LIBRARY 


UNIVERSITY  OF  CALIFORNIA. 


GIRT  OR 


9    /    ± 
Received         -&JLfaJr  ,  1900  . 

Accession  No.    ff/  0  $  6   .    Class  No. 


National  Finance  and  Public  Money 


Settling  tie  Money  Question 


overnment  Ownership  of  Railroads  and  Telegraphs 

BY 

J.  M.  HORNER 

AND 

PERSONAL  HISTORY  OF  THE  AUTHOR. 


HONOLULU,  H.  I. 
HAWAIIAN  GAZETTE  Co.  PRINT 


Entered,  according  to  Act  of  Congress,  in  the  year  1898,  by  J.  M.  HORNER 
In  the  Office  of  the  Librarian  of  Congress,  at  Washington,  D.  C. 


\ 


0 


THE   AUTHOR  AT  76  YEARS  OF  AGE. 


5-13 


f/fc 


MA  /AJ 


NATIONAL  FINANCE  AND  PUBLIC  MONEY. 


Within  these  pages  may  be  found  a  financial  machine  owned 
by  the  people  and  by  it  they  will  produce,  own  and  loan  public 
money,  basing  it  upon  Government  and  State  bonds,  gold  and 
silver  bullion  and  real  estate. 

The  material  of  this  money  is  gold,  silver  and  paper.  Its 
standard  of  value  is  United  States  Gold  Coin. 

All  money  made  by  this  machine  is  a  full  legal  tender  for 
all  money  purposes,  public  and  private,  and  its  value  is  fixed  by 
law  to  that  of  the  standard  up  to  its  full  face  value. 

By  this  machine  the  people  will  inaugurate  bimetallism,  with- 
out the  consent,  or  assistance  of  other  nations. 

By  it  they  will  produce  a  money  that  is  safe,  sound  and  flex- 
ible, all  on  a  parity,  always  enough,  never  too  much,  and  at  an 
approximate  equitable  interest  of  three  per  cent,  per  annum. 

All  money  produced  by  this  machine  and  loaned  by  it  to  the 
people,  is  all  redeemed  by  the.  borrower  or  his  property,  the  same 
as  the  National  Bank  Note  is  now  redeemed. 

This  machine  will  produce  a  revenue  from  a  new  source  for 
the  use  of  the  Government,  variously  estimated  from  60  million 
to  200  million  dollars  annually,  without  expense  to  the  Govern- 
ment for  collecting.  A  Government  Banking  Department  will 
be  the  people's  agent  for  running  this  financial  machine  for  them. 

This  machine  is  a  system  of  national  finance  and  currency  and 
if  put  in  motion,  would  remove  from  the  business  world;  most, 
if  not  all  the  evils  arising  from  our  present  inadequate,  iron, 
clad,  private  money  systems. 

The  suffering  and  loss,  arising  from  a  depreciated  currency, 
insufficient  supply,  imperfect  distribution  and  money  panics,  in 
times  past  are  beyond  computing  and  are  the  bitter  fruits,  that 
have  fallen  to  civilized  man  from  tradition  and  inheritance,  from 
the  feudal  ages.  All  of  which  this  financial  machine  would  re- 
move. 

To  read  carefully  the  following  pages  will  show  how  all  the 


above  desirable  things  and  many  more  can  be  done  in  a  con- 
stitutional way. 

Dedicated  to  the  ruling  and  producing  classes  of  all  nations 
and  especially  to  those  of  my  own  country,  the  United  States  of 
North  America. 

"Come  let  us  reason  together,"  "Produce  your  cause,  saith 
the  Lord;  Bring  forth  your  strong  reasons,  saith  the  King 
of  Jacob." 

"Prove  all  things,  hold  fast  that  which  is  good." 

Entered  according  to  Act  of  Congress  in  the  office  of  the 
Librarian  of  Congress,  at  Washington,  D.  C.,  in  the  year  1892, 
by  John  M.  Horner  of  Hawaii,  Hawaiian  Islands. 


PREFACE. 


The  mediums  of  exchange  between  men  since  coins  and 
tokens  were  adopted  have  been  established,  and  to  a  large  ex- 
tent controlled  by  a  limited  number  of  individuals  in  every  com- 
munity, such  persons  have  become  a  class  who  live  by  the  mani- 
pulation of  money  in  its  various  forms.  All  of  the  people  who 
live  by  such  manipulation  may  be  fairly  classed  as  the  money 
changers.  Although  it  is  their  habit  to  assume  various  titles 
such  as  bankers,  brokers,  financiers,  capitalists  and  others. 

This  class  produce  nothing  and  all  that  they  receive  is  taken 
from  the  people  who  produce  the  wealth  of  the  world. 

The  diffusion  of  intelligence  among  the  American  people  dur- 
ing the  last  half  century,  has  been  the  cause  of  directing  the  at- 
tention of  a  much  greater  proportion  of  our  citizens  to  the  sub- 
ject of  finance  and  money  than  ever  before.  As  a  result  it  is 
seen  that  all  money  systems  are  at  fault.  The  masses  produce 
wealth  and  the  money  changers  take  nearly  all  of  it  that  is  not 
absolutely  necessary  to  maintain  the  physical  existence  of  the 
producers. 

That  such  a  condition  could  exist  when  but  few  were  edu- 
cated and  the  masses  were  taught  only  to  obey,  is  not  surpris- 
ing; but  that  a  country  like  the  United  States  with  the  result  of 
free  and  even  compulsory  education,  so  generally  manifest 
among  its  people,  should  remain  under  the  yoke  of  the  class 
would  indeed  be  anomalous. 

The  frequently  recurring  conditions  of  disaster  and  panic 
arising  from  the  imperfect  systems  of  money  now  prevailing 
throughout  the  world  have  concentrated  upon  the  subject,  the 
attention  of  great  numbers  of  people  who  have  heretofore  re- 
garded it  as  something  mysterious;  comprehended  only  by  the 
money  changing  class;  but  the  people  at  large  have  suffered 
their  results. 

As  in  all  great  awakenings,  the  first  symptoms  are  apparent 
in  a  general  feeling  of  dissatisfaction  with  the  methods  in  use, 


this  feeling  is  participated  in  by  all  classes  who  are  not  depend- 
ent upon  the  manipulation  of  money,  and  is  shown  by  the  num- 
erous propositions  for  change,  all  looking  to  the  inauguration  of 
a  system  whereby  the  producer  of  wealth  may  retain  his  fair 
proportion  of  the  products. 

While  much  has  been  published  and  numerous  methods  pre- 
sented; no  system  has  been  advocated  which  would  result  in 
giving  to  the  people  a  currency  to  facilitate  the  production  and 
distribution  of  wealth,  which  would  have  at  all  times  the  same 
value  as  United  States  gold  coin,  and  be  so  elastic  that  it  could 
always  be  obtained  for  the  uses  of  agriculture,  manufacture  and 
commerce  and  never  in  excessive  supply. 

It  is  the  object  of  the  following  pages  to  present  for  the  con- 
sideration of  the  American  people  a  system  which  will  produce 
these  results,  which  it  is  believed  will  remedy  the  evils  of  exist- 
ing methods,  and  enable  any  person  having  such  property  as 
will  be  adequate  security  to  the  Government  to  obtain  all  the 
money  which  he  can  profitably  utilize,  by  the  payment  of  an 
amount  of  interest  which  he  can  afford  to  pay,  and  further  en- 
able him  when  he  can  no  longer  make  profitable  use  of  the 
money  borrowed,  to  redeem  with  it  the  securities  deposited  and 
enable  any  one  to  lend  to  the  Government  any  of  this  money 
which  he  may  have  on  hand  not  immediately  required  for  use, 
and  receive  therefore  a  certificate  of  deposit  payable  on  demand 
with  interest. 

It  is  hoped  that  candid  examination  will  convince  the  reader 
that  no  unsuperable  objection  exists  to  the  realization  of  the 
ends  desired,  and  while  it  will  doubtless  be  necessary  to  amend 
and  improve  the  details  of  management,  there  is  enough  given  in 
the  following  work  to  show  that  the  principles  advocated  are 
just,  and  that  the  inauguration  of  this  reform  is  practicable. 

It  should  be  understood  that  there  is  no  thought  of  a  social- 
istic distribution  of  property,  no  thought  of  furnishing  money 
without  adequate  security;  but  that  money  which  will  always  be 
worth  par  in  gold  coin,  is  to  be  made  available  at  a  low  and 
reasonable  rate  of  interest  to  all  who  can  furnish  the  required 
security  without  the  intervention  of  the  money  changers,  that 
the  poor  man  with  need  for  a  small  sum  may  procure  that  sum 
as  cheaply,  as  the  millionaire  needing  more  millions,  and  that 
this  boon  is  to  reach  to  the  remotest  hamlet  in  the  country. 


CHAPTER    I. 


THE  MONEY  QUESTION. 

The  strong  feeling  of  dissatisfaction  with  existing  money  sys- 
tems which  is  so  extensively  manifested  by  the  more  intelligent 
and  better  educated  people  of  all  civilized  communities,  is  from 
time  to  time  emphasized  by  the  utterances  of  leading  men  who 
clearly  indicated  the  reasons  for  such  dissatisfaction,  and  who 
set  forth  more  or  less  forcibly  and  correctly  the  directions  in 
which  reforms  in  financial  methods  are  desirable. 

It  is  not  probable  that  men  like  Jefferson,  Franklin  and  others 
prominent  in  the  early  days  of  our  Republic,  or  Calhoun  later 
and  Peter  Cooper;  Secretary  Windom  and  others  of  more  re- 
cent date  would  fail  to  understand  and  appreciate  the  faults  that 
produce  the  disastrous  results  to  which  whole  communities  are 
periodically  subjected  by  convulsions  in  the  money  market. 
They  see  plainly  that  under  existing  conditions  and  methods  of 
finance  such  disasters  are  enevitable. 

They  seem  also  to  see,  in  a  general  way,  what  is  lacking,  and 
to  be  in  a  sense  groping  for  reforms  which  shall  prevent  their 
recurrence. 

In  the  opinion  of  Thomas  Jefferson,  the  Constitution  has  made 
this  subject  clear,  plain  and  positive.  He  says:  Bank  paper 
must  be  suppressed  and  the  circulation  must  be  restored  to  the  na- 
tion to  whom  it  belongs. 

The  great  delusion  and  snare  of  the  banks  is  "a  specie  con- 
vertible paper,  "which  they  can  never  convert  when  the  specie 
is  most  wanted."  On  this  point  Benjamin  Franklin  declares  that 
a  national  paper  money  well  founded  has  great  advantages  over 
gold  and  silver,  being  light  and  easy  to  handle  in  large  sums, 
and  not  likely  to  have  its  volume  reduced  by  demands  for  ex- 
portation." "On  the  whole"  he  says,  "no  method  has  hitherto 
been  discovered  to  establish  a  medium  of  trade  equal  in  all  its 
advantages  to  bills  of  credit  made  a  general  legal  tender." 


8 

John  C.  Calhoun  in  his  speech  in  Congress  in  1838  upon 
the  Treasury  Bill,  declares  that,  "after  bestowing  the  best  re- 
flection I  can  give  the  subject,  that  no  convertible  paper  is  suit- 
able for  a  currency.  It  is  the  form  of  credit  paper  in  private 
transactions  between  man  and  man,  but  not  for  a  standard  of 
value,  to  perform  exchanges  generally,  which  constitutes  the  ap- 
propriate functions  of  currency  or  money."  No  one  can  doubt 
but  that  the  Government'  credit  is  better  than  any  bank — more 
stable  and  more  safe.  *  *  *  Bank  paper  is  cheap  to  those 
who  make  it;  but  dear,  very  dear,  to  those  who  use  it. 

On  the  other  hand,  the  credit  of  the  Government,  while  it 
would  greatly  facilitate  its  financial  operations,  would  cost  noth- 
ing, or  next  to  nothing,  both  to  it  and  the  people,  and  would, 
of  course,  add  nothing  to  the  cost  of  production,  which  would 
give  every  branch  of  our  industries — agriculture,  commerce  and 
manufactures — as  far  as  its  circulation  might  extend,  great  ad- 
vantages both  at  home  and  abroad;  *  *  and  I  now  un- 
dertake to  affirm,  and  without  the  least  fear  that  I  can  be  an- 
swered, that  a  paper  issued  by  Government,  with  the  simple 
promise  to  receive  it  for  all  its  dues,  leaving  its  creditors  to  take 
it,  or  gold  and  silver,  at  their  option,  would  to  the  extent  it 
could  circulate,  form  a  perfect  paper  circulation  which  could  not 
be  abused  by  the  Government;  that  it  would  be  as  uniform  in 
value  as  the  metals  themselves. 

And  I  shall  be  able  to  prove  that  it  is  within  the  Constitution 
and  powers  of  Congress  to  use  such  a  paper  in  the  management 
of  its  finances,  according  to  the  most  rigid  rule  of  construing  the 
Constitution. 

Secretary  Windom,  standing  in  the  presence  of  as  intelligent 
an  audience  as  could  be  gathered  with  the  unseen  hand  of  death 
suspended  above  him  declared  almost  with  his  dying  words  that 
"the  ideal  financial  system  would  be  one  that  should  furnish  just 
enough  absolutely  sound  currency  to  meet  the  legitimate  wants 
of  trade,  and  have  enough  elasticity  of  volume  to  adjust  itself  to 
the  varying  necessities  of  the  people.  Could  such  a  medium  be 
secured,  the  grave  commercial  disasters  which  threaten  our 
future  might  be  averted." 

We  claim  this  public  money  system  will  fill  every  requirment 
of  the  secretary. 

The  following  is  the  second  plank  in  the  Platform  of  the  tn- 


dependent  Party,  adopted  by  the  National  Convention  at  Indi- 
anapolis, May  1 7th,  1876: 

"We  believe  that  the  United  States  notes  issued  directly  by 
the  Government  and  convertable  on  demand  into  United  States 
obligations  bearing  an  equitable  rate  of  interest  (not  exceeding 
one  cent  a  day  on  each  one  hundred  dollars)  and  interchange- 
able with  United  States  notes  at  par  will  afford  the  best  circu- 
lating medium  ever  devised;  such  United  States  notes  should  be 
a  full  legal  tender  for  all  purposes,  except  for  the  payment 
of  such  obligations  as  are  by  existing  contracts  expressly  made 
payable  in  coin.  And  we  hold  that  it  is  the  duty  of  the  Govern- 
ment to  provide  such  a  circulating  medium,  and  we  insist  in 
the  language  of  Thomas  Jefferson:  "That  bank  paper  must 
be  suppressed  and  the  circulation  restored  to  the  nation  to  whom 
it  belongs." 

The  following  is  a  plank  of  the  Platform  of  The  National 
Party: 

"It  is  the  exclusive  function  of  the  general  Government  to 
coin  money,  and  regulate  its  value.  All  bank  issues  designed 
to  circulate  as  mone'y  should  be  suppressed.  The  circulating' 
medium,  whether  of  metal  or  of  paper  should  be  issued  by 
Government,  and  made  a  full  legal  tender  for  all  debts,  duties 
and  taxes  in  the  United  States  at  its  stamped  value." 

The  fourth  plank  of  the  Democratic  Convention  of  Ohio 
some  years  ago: 

"The  issue  by  the  general  Government  alone  of  all  circulating 
medium,  whether  paper  or  metallic." 

Two  planks  of  the  "National  Currency  Party"  of  California 
1879. 

Resolved,  That  we  demand  that  the  paper  currency  shall  be 
distributed  directly  to  the  people,  on  their  securities,  to  be 
named  by  Congress,  as,  United  States  bonds,  bullion  and  upon 
improved  real  estate  at  half  its  value,  at  a  tax  of  three  per  cent, 
per  annum. 

Resolved,  That  the  form  of  the  paper  money  issue  of  the 
Government  shall  be  of  the  same  significance  as  coined  money, 
not  a  promise  to  pay;  but  a  bill  receivable  for  all  Government 
dues  and  a  legal  tender  without  limit. 

Farmers'    Alliance    Platform— Two    planks:      Thev    demand 


IO 

"The  abolition  of  the  National  Banks"  and  " Government  loans 
upon  land  and  upon  non-perishable  farm  products." 

The  above  and  scores  of  other  prominent  individuals  and  or- 
ganized bodies  of  men  demand  Public  Money;  and  we  maintain 
the  money  question  never  can  be  justly  and  permanently  settled 
In  any  other  way. 

Where  the  Profits  Go! 

The  New  York  Weekly  Atlas  says:  'The  First  National  Bank 
in  New  York  has  declared  a  dividend  of  120  per  cent,  on  a 
capital  of  $500,000,  for  the  year  1879,  after  adding  $500,000  to 
its  surplus,  and  leaving  $267,700.84  undivided  to  profit  and  loss 
account.  Such  is  the  astounding  statement  in  the  newspapers. 
It  is  difficult  to  understand  how  such  enormous  profits  could 
Jiave  been  made  legitimately  in  any  business  during  the  unpros- 
perous  year  of  1879,  if  true,  it  is  very  evident  that  many  firms 
and  individuals  must  have  lost  their  earnings  and  accumula- 
tions to  have  enabled  the  stockholders  in.  this  bank  to  add  so 
much  to  theirs.  It  could  not  have  been  true  that  all  those  doing 
business  with  it  and  through  it,  made  money  too. 

From  whom  was  this  wealth  taken?  This,  we  think  is  a  very 
pertinent  question,  and  if  we  will  stop  a  moment  and  consider 
it,  the  answer  is  easy  enough.  Who  produce  wealth?  Labor 
and  the  soil  are  the  only  sources  of  wealth  in  the  world.  Labor 
•on  the  farm,  in  the  mine  or  factory  adds  to  the  wealth  of  the 
nation  and  only  that.  Because  a  merchant  buys  1,000,000 
'bushels  of  wheat  and  puts  it  in  his  storehouse  and  holds  it  until 
it  doubles  in  price,  the  country  is  no  richer.  The  difference  is 
made  up  from  the  pockets  of  those  who  use  the  flour.  But  the 
lesson  of  this  immense  increase  in  money  lies  in  the  fact  that, 
while  many  have  labored  for  a  bare  existence  the  money  kings 
have  drawn  upon  the  sources  of  wealth  and  piled  it  up  in  their 
coffers.  Thus  the  rich  are  growing  richer  and  the  poor  poorer, 
by  the  present  system  of  unequal  distribution.  The  prevailing 
idea  of  giving  accumulated  wealth  all  the  advantages  and  put- 
ting all  the  burdens  on  the  producers  thereof,  must  be  over- 
thrown, else  we  shall  soon  see  a  system  and  state  of  society 
similar  to  that  in  France  before  the  great  revolution,  and  possi- 
bly with  as  terrible  results. 


II 

The  Hon.  S.  S.  Marshall  of  Illinois,  in  a  speech  in  Congress, 
July  21,  1868,  made  the  following  statement:  "An  association 
of  gentlemen,"  in  an  Eastern  State  raised  $300,000  in  currency. 
They  went  to  the  office  of  the  Register  of  the  Treasury,  and 
exchanged  their  currency  for  $300,000  in  six  per  cent.,  gold 
bearing  bonds.  They  then  went  to  the  office  of  the  Comptroller 
of  the  currency,  in  the  same  building,  organized  a  National 
Bank,  deposited  their  $300,000  in  bonds,  and  received  for  their 
bank  $270,000  in  National  currency.  They  had  let  the  Govern- 
ment have  $30,000  in  currency  more  than  they  received  for 
banking  purposes,  and  had  on  deposit  $300,000  on  which  they 
received  as  interest  from  the  Government  $18,000  a  year  in 
gold  (and  exempt  from  taxation).  This  was  pretty  good  finan- 
ciering for  these  bankers  to  receive  $18,000  a  year  in  gold  on 
the  $300,000  in  currency  which  they  had  thus  loaned  to  the 
Government.  But  this  is  not  the  whole  story.  They  had  their 
bank  made  a  public  depository.  They  soon  discovered  that 
there  was  scarcely  ever  less  than  $1,000,000  of  Government 
money  deposited  within  their  vaults.  They  did  not  like  to  see 
this  vast  sum  lie  idle.  They  therefore,  took  $1,000,000  of  this 
Government  money,  and  bought  $1,000,000  of  five-twenties 
with  it.  In  other  words  they  took  $1,000,000  of  the  Govern- 
ment's own  money  to  the  Government,  and  deposited  the  bonds 
received  in  the  vaults  of  their  bank,  on  which  they  received  from 
the  same  Government  $60,000  a  year  in  gold,  as  interest.  Thus 
for  the  $30,000  in  currency,  which  they  originally  loaned  the 
Government,  they  received  annually,  in  all  $78,000  in  gold 

Banking  is  a  most  profitable  business  and  all  the  profits  come 
out  of  the  people.  Judging  by  the  following  illustration  it  is 
no  wonder  that  the  nine  thousand  men  who  control  the  banking 
business  desire  to  make  it  perpetual.  Hon.  Wm.  H.  English 
of  Indianapolis,  was  president  of  the  First  National  Bank  of 
Indianapolis  for  fourteen  years,  and  on  retiring  he  says:  "I 
congratulate  the  officers  and  stockholders  of  our  enterprise.  The 
bank  has  been  in  operation  fourteen  years  under  my  control 
with  a  capital  of  $500,000.  In  the  meantime  it  has  voluntarily 
returned  $500,000  of  capital  stock  back  to  the  stockholders,  be- 
sides paying  to  them  in  dividends  $1,496,250  a  part  of  which 
was  in  gold  and  I  now  turn  it  over  to  you,  with  capital  unim- 
paired and  $327,000  of  the  undivided  earnings  on  hand.  To 


12 

this  may  be  added  the  premiums  on  United  States  bonds  at 
present  prices,  amounting  to  $36,000  besides  a  large  amount 
for  lost  or  destroyed  bills."  Do  you  think  it  any  wonder  that 
President  Pullen's  address  before  the  National  Bankers'  Asso- 
ciation at  St.  Louis  the  other  day  was,  as  the  P.  I.  says:  "Al- 
most a  prayer."  When  one  bank  in  an  interior  city  makes  the 
above  showing,  is  it  any  wonder  that  they  desire  to  perpetuate 
the  system  so  full  of  profit  to  themselves.  The  bankers  are  the 
boys,  and  the  people  are  the  frogs  in  the  story  of  the  boys  ston- 
ing the  frogs.  It  was  fun  for  the  boys  but  death  to  the  poor 
frogs.  So  this  National  banking  system  in  operation  is  fun  for 
the  bankers  but  death  to  the  people. 

James  A.  Garfield  said:  "Whoever  controls  the  volume  of 
money  'of  any  country  is  absolute  master  of  all  the  industries 
and  commerce." 

Chauncy  M.  Depew  said:  "Fifty  men  in  these  United  States 
have  it  in  their  power  by  reason  of  the  wealth — which  they  con- 
trol, to  come  together  within  twenty-four  hours  and  arrive  at 
an  understanding  by  which  every  wheel  of  trade  and  commerce 
may  be  stopped  from  revolving,  every  avenue  of  trade  blocked, 
every  electric  key  struck  dumb.  Those  fifty  men  can  paralize 
the  whole  country  for  they  can  control  the  circulation  of  the 
currency  and  create  panic  whenever  they  will."  They  have 
already  created  a  panic  that  we  are  not  over  yet,  and  now  to 
intimidate  voters  they  threaten  another,  "such  as  was  not  from 
the  beginning,"  if  we  refuse  to  obey  their  commands.  Public 
money  would  not  only  prevent  the  above  unjust  accumulation 
of  wealth  and  the  unwonton  exercise  of  power  as  above  hinted 
at,  which  is  so  distasteful  to  the  American  people;  but  it  would 
prevent  comparatively  all  financial  evils  that  afflicts  and  ham- 
pers production  and  business  by  being  compelled  as  they  now 
are  to  use  exclusively  private  money.  The  enactment  of  the 
following  bill  would  give  us  Public  Money  and  justly  settle  the 
money  question,  as  the  Government  Banking  Department  would 
be  the  money  power,  and  all  the  people  its  stockholders. 

The  division  of  the  American  people  into  political  parties  has 
not  proved  a  complete  division  upon  the  subject  of  finance  and 
currency,  for  it  is  observed  that  all  parties  have  devoted  more 
or  less  consideration  to  the  expression  of  dissatisfaction  of  pres- 
ent methods  of  finance  and  currency.  While  it  is  plain  that  the 


13 

desire  for  improved  methods  is  intense,  no  system  has  been 
elaborated  which  has  commanded  general  approval. 

The  difficulty  has  been,  that  of  all  the  schemes  brought  for- 
ward and  advocated  none  have  shown  how  a  currency  could  be 
provided  for  the  requirements  of  agriculture,  manufacture  and 
commerce,  which  should  be  solidly  founded  upon  a  gold  basis, 
and  still  be  sufficiently  elastic  to  stretch  for  all  emergencies  and 
contract  when  not  required  without  depreciation  or  abatement 
of  its  purchasing  power.  If  it  can  be  shown  that  a  currency  of 
that  nature  may  be  safely,  easily  and  economically  produced  and 
circulated  and  that  in  addition  to  the  above  good  qualities  it 
may  be  made  available  on  reasonable  terms  to  all  who  can  furnish 
adequate  security,  such  showing  will  render  a  service,  not  to  the 
American  people  alone,  but  to  the  whole  civilized  world. 

In  the  full  belief  that  this  can  be  done  these  pages  have  been 
written,  with  the  hope  of  presenting  in  a  practical  form,  by 
which  so  desirable  a  result  may  be  attained. 

In  offering  for  consideration,  the  following  bill,  it  is  not 
claimed  that  every  detail  is  perfect,  but  there  can  be  no  reason- 
able doubt  that  if  a  law  in  substance  like  the  one  here  advo- 
cated shall  be  enacted,  the  result  will  be  the  inauguration  of  a 
new  era  in  finance  whereby  the  agriculture,  the  manufactures 
and  the  commerce  of  this  fair  land  will  attain  prosperity  to  a 
degree  far,  far  in  advance  of  anything  shown  in  the  history 
of  man.  It  will  enable  the  producers  of  wealth  to  devote  their 
energies  to  such  production  untrammelled  by  the  embarrass- 
ments incident  to  the  efforts  of  the  money  changers  to  corral 
the  product.  It  will  elevate  the  producer  to  the  pinnacle  of  re- 
spect now  disputed  by  the  claws  of  the  money  changing  tigers. 
And  will  enable  the  American  citizen  to  quote  truly  the  saying 
that  ours  is  a  "Government  of  the  people,  by  the  people,  for  the 
people." 

The  human  mind  is  .apt  to  enter  upon  the  consideration  of 
proposed  change  of  methods,  hampered  by  the  beliefs  and  pre- 
judice which  have  come  from  long  use  to  be  accepted  as  truths 
without  enquiry.  The  reader  is  earnestly  requested  to  free  his 
mind  from  any  idea,  that  in  proposing  a  new  financial  system,  a 
scheme  is  introduced  for  the  purpose  of  getting  something  for 
nothing,  and  that  disorganization  of  business  and  disruption  of 
society  will  follow. 


14 

If  gold  is  to  remain  the  standard  of  value  throughout  the 
civilized  world,  as  it  should  and  probably  will,  the  currency 
proposed  in  the  following  bill  based  upon  gold  value  is  adequate 
guarantee  that  such  currency  will  always  be  of  the  same  value. 


CHAPTER  II. 


AN  ACT 

To  organize  a  Government  Banking  Department  and  to  author- 
ize its  officers  to  make,  circulate  and  redeem  money. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of 
the  United  States  in  Congress  assembled: 

SECTION  I .  That  a  Government  Banking  Department  is  here- 
by authorized  to  be  organized  which  shall  consist  of  a  Parent 
Bank  to  be  located  at  the  seat  of  Government  with  one  or  more 
branches  in  each  State  and  Territory  and  its  officers  are  hereby 
authorized  to  make,  circulate  and  redeem  money  in  manner  here- 
after set  forth ;  which  money  shall  be  receivable  in  payment  of  all 
taxes,  duties,  imports,  excise,  debts  and  demand  of  every  kind, 
due  to  the  Government  and  for  all  salaries,  debts  and  demands 
owing  by  the  Government  to  individuals,  corporations  and  asso- 
ciations within  the  United  States,  and  shall  also  be  lawful  money 
and  a  legal  tender  in  payment  of  all  debts,  public  and  private 
within  the  United  States,  except  as  otherwise  provided  by  writ- 
ten contract  and  signed  by  the  parties  making  the  contract  be- 
fore the  enactment  of  this  bill. 

SECTION  2.  The  standard  of  value  of  this  money  shall  be  the 
United  States  gold  coin,  and  all  money  circulated  by  virtue  of  this 
Act,  its  legal  value  is  hereby  fixed  to  that  of  the  standard  accord- 
ing to  the  face  value  of  each  piece. 

These  money  measures  of  value  shall  be  made  of  gold,  silver 
and  paper. 

The  gold  measures  of  value  shall  be  five  dollars,  ten  dollars 
and  twenty  dollars. 

The  silver  measures  of  value  shall  be  ten  cents,  twenty-five 
cents,  fifty  cents  and  one  dollar,  and  at  a  ratio  of  16  to  I  of  gold. 


i6 

The  paper  measures  of  value  shall  be  one  dollar,  three  dollars, 
five  dollars,  ten  dollars,  twenty  dollars,  fifty  dollars,  one 
hundred  dollars,  five  hundred  dollars,  one  thousand  dollars,  and 
ten  thousand  dollars. 

1.  Each  denomination  shall  be  consecutively  numbered. 

2.  They  shall  be  issued  only  by  the  way  of  a  loan  upon  real 
estate,  or  such  other  property  as  this  Act  shall  provide. 

3.  They  shall  be  signed  by  the  President  of  the  bank  loaning 
them  and  countersigned  by  its  Cashier,  anf  stamped  with  the 
bank  stamp,  but  not  until  needed  for  loaning. 

4.  A  record  shall  be  kept  of  the  specific  notes  issued  upon 
and  in  respect  of  each  particular  loan  (loans  being  numbered), 
so  that  it  may  be  known  when  and  to  whom  any  particular  note 
was  first  issued. 

5.  Where  notes  are  returned  in  re-payment  of  a  loan  or  any 
part  thereof  they  shall  be  at  once  cancelled  and  forwarded  to 
the   parent   bank   and   shall   thereafter   at  frequent   periods   be 
destroyed  in  the  presence  of  a  majority  of  the  Cabinet  and  cer- 
tified by  the  United  States  Treasurer. 

SECTION  3.  The  branch  bank  directors  shall  loan  money 
to  the  Government,  to  the  States  and  to  the  people,  upon 
securities  which  shall  consist  of  Government  and  State  bonds  at 
90  per  cent,  of  their  gold  market  value,  and  on  gold  and 
silver  bullion  at  90  per  cent,  of  their  market  value  in  gold  coin 
and  on  real  estate  at  not'  more  than  one-half  of  its  taxable  value, 
and  at  a  rate  of  interest  not  to  exceed  3  per  cent,  per  annum; 
interest  payable  semi-annually  in  advance. 

It  shall  be  unlawful  for  the  Directors  to  make  any  loan  upon 
any  other  or  different  securities  than  those  named  above,  or 
in  any  greater  amount  on  their  per  cent.,  or  market  value  than 
those  herein  above  stipulated,  or  to  make  any  loan  upon  real 
estate  until  they  are  fully  satisfied  that  such  securities  are  ade- 
quate for  the  protection  of  the  Government. 

It  shall  be  unlawful  for  the  Directors  to  discount  notes,  or 
buy  and  sell,  exchange,  or  to  use  any  of  the  bank  money  except 
as  herein  authorized. 

It  shall  be  unlawful  for  any  bank  in  the  department  to  loan 
money  to  any  officer  or  employee  of  such  bank. 


17 

SECTION  4.  It  shall  be  lawful  for  the  directors  of  the  branch 
banks  to  receive  or  cause  to  be  received  on  deposit  the  money 
loaned  by  the  branch  banks  in  sums  of  not  less  than  five  dollars 
or  some  multiple  thereof;  and  give  to  the  depositor  a  certificate  or 
a  pass  book  of  deposit,  the  whole  or  any  fraction  of  which  de- 
posit with  interest  shall  be  payable  on  demand. 

The  rate  of  interest  to  be  charged  and  to  be  paid  by  the 
Banks  shall  be  fixed  by  Congress  at  its  first  session  after  every 
census  taken,  until  the  next  census  is  taken,  interest  charged  on 
loans  shall  be  3  per  cent,  per  annum,  payable  semi-annually  in 
advance;  and  interest  paid  out  on  deposits  shall  be  2^  per  cent, 
per  annum  for  all  deposits  left  in  the  Bank  after  ten  days. 

SECTION  5.  The  officers  of  the  said  department  shall  be  a  Pre- 
sident, a  Vice-President  and  an  Attorney;  they  shall  be  a  part  of 
the  Board  of  Directors  of  said  department  which  shall  consist  of 
said  officers  and  the  President  of  the  branch  banks  as  .here- 
after set  forth. 

SECTION  6.  The  officers  of  the  department,  shall  also  be  the 
President,  the  Vice-President,  and  the  Attorney  of  the  parent 
bank. 

SECTION  7.     The  Officers  of  each  of  the  branch  banks  shall 
be  a  President,  a  Vice-President  and  an  Attorney. 
( 

SECTION  8.  The  President  of  the  department  shall  be  elected 
by  the  Senate  of  the  United  States  for  the  term  of  six  years,  the 
first  Vice-President  of  the  department  shall  be  elected  by  the 
Senate  of  the  United  States  for  the  term  of  four  years,  and 
each  Vice-President  after  the  first  shall  be  so  elected  for  the 
term  of  six  years,  the  first  Attorney  of  the  department  shall  be 
elected  by  the  Senate  of  the  United  States  for  the  term  of  two 
years,  and  each  attorney  after  the  first  shall  be  so  elected  for  the 
term  of  six  years. 

In  case  a  vacancy  shall  occur  among  the  officers  of  the  depart- 
ment when  the  Senate  is  not  in  session  the  President  of  the 
United  States  shall  appoint  some  competent  person  to  fill  such 
vacancy  and  the  person  so  appointed  shall  hold  the  office  so 
vacated  until  an  election  shall  be  made  by  the  Senate  for  the 
balance  of  the  term  of  office  so  vacated. 


i8 

SECTION  9.  The  officers  of  the  branch  banks  shall  be  elected 
by  the  House  of  Representatives  and  the  officers  so  elected  shall 
hold  office  for  the  term  of  six  years  except  that  the  Vice-President 
of  each  branch  bank  first  elected  shall  hold  office  for  the  term 
of  four  years  and  the  Attorney  of  each  bank  first  elected  shall 
hold  office  for  the  term  of  two  years. 

In  case  a  vacancy  shall  occur  among  the  officers  of  any 
branch  bank  when  Congress  is  not  in  session  the  Governor  of 
the  State  or  Territory  in  which  such  branch  bank  is  located 
shall  appoint  some  competent  person  to  fill  such  vacancy,  and 
the  person  so  appointed  shall  hold  the  office  so  vacated  until 
an  election  shall  be  made  by  the  House  of  Representatives  for 
the  balance  of  the  term  of  office  so  vacated. 

SECTION  10.  It  shall  be  the  duty  of  the  officers  of  the  depart- 
ment to  cause  to  be  manufactured  and  through  the  parent  bank 
supplied  to  the  branch  banks  all  of  the  money  which  shall  be  re- 
quired in  addition  to  coin  deposits  to  meet  every  demand  made 
upon  them  for  money  in  accordance  with  the  provisions  of  this 
Act,  with  power  to  recall  such  money  or  any  portion  thereof  or  to 
transfer  the  same  from  one  branch  bank  to  another  as  the 
requirements  of  business  may  demand. 

They  shall  organize  the  Banking  Department  herein  authoriz- 
ed and  have  general  supervision  of  all  the  business  of  the  de- 
partment. 

They  shall  establish  branch  banks  in  addition  to  those  above 
referred  to,  to  be  numbered  in  the  series  of  numbers  of  Branch 
Banks,  upon  the  petition  of  a  majority  of  voters  of  any  Con- 
gressional district  where  no  bank  exists. 

They  shall  neither  lend  nor  refund  money,  pay  interest  on  or 
redeem  bank  certificate. 

They  shall  receive  and  disburse  according  to  law  all  net  pro- 
ceeds of  all  the  branch  banks,  rendering  a  quarterly  report  of 
the  business  of  the  department  to  the  United  States  Treasurer, 
stating  the  amount  of  money  manufactured  since  last  report, 
the  amount  sent  to  the  branch  banks,  the  expenses  of  the 
parent  bank,  the  net  proceeds  of  the  department  and  make  a 
quarterly  settlement  with  the  United  States  Treasurer,  passing 
over  to  the  Treasurer  at  such  settlement  all  net  proceeds  of  the 
department. 


19 

They  shall  ascertain  from  day  to  day  the  market  value  of 
bonds  and  bullion  and  communicate  the  same  to  the  branch 
bank  directors,  who  shall  be  governed  by  such  communication. 

They  shall  make  rules  and  regulations  not  inconsistent  with 
any  existing  law  or  regulations  made  by  the  department  directors 
for  the  inauguration  and  detail  management  of  all  branch  bank 
business  of  the  department,  and  such  rules  and  regulations  shall 
be  published  and  shall  have  the  force  of  law  until  rules  and  regu- 
lations shall  be  made  by  the  board  of  directors  of  the  depart- 
ment for  the  purpose. 

SECTION  1 1 .  It  shall  be  the  duty  of  the  board  of  directors  of 
the  department  to  meet  at  the  seat  of  Government  on  the  first 
Tuesday  of  November  of  each  year,  organize  by  appointing  one  of 
their  number  to  preside.  A  majority  of  all  the  directors  shall  con- 
stitute a  quorum  for  the  transaction  of  business. 

At  each  annual  meeting  they  shall  confer  upon  all  matters 
connected  with  the  business  of  the  department. 

They  shall  recommend  to  Congress  any  amendment  to  this 
Act  which  they  may  deem  of  importance  to  render  the  depart- 
ment more  serviceable  and  efficient. 

They  shall  make  rules  and  regulations  not  inconsistent  with 
any  existing  law  for  the  management  of  the  business  of  the 
department  and  may  alter  and  amend  the  same  at  any  meeting. 

Such  rules  and  regulations  shall  be  published  and  sent  to  every 
officer  and  every  director  of  the  department  and  when  so  pub- 
lished and  distributed  they  shall  have  the  force  of  law. 

The  officers  of  all  the  banks  shall  be  bound  by  and  act  in 
accordance  with  all  decisions  concurred  in  by  a  majority  of  the 
directors  at  any  meeting  of  the  board  of  directors. 

No  compensation  shall  be  paid  to  the  department  directors 
for  their  services  as  such,  but  their  traveling  expenses  to  and 
from  each  annual  meeting  shall  be  paid  to  them. 

SECTION  12.  In  addition  to  the  duties  placed  upon  the  branch 
bank  directors  by  Sections  2,  3,  4,  etc.,  of  this  Act. 

They  shall  also  pay  for  and  redeem  all  certificates  of  deposit 
and  the  interest  which  shall  have  accumulated  thereon  when 
such  certificate  shall  be  delivered  up  to  the  bank. 


2O 

All  certificates  of  deposit  so  redeemed  shall  be  effectively  can- 
celled upon  redemption  and  forwarded  to  the  parent  bank. 

All  of  the  branch  bank  officers  and  directors  shall  be  governed 
by  the  laws  of  Congress,  the  rules  and  regulations  made  by  the 
department  directors  and  by  the  instructions  of  the  parent  bank 
directors. 

SECTION  13.  All  property  or  evidence  of  property  deposited 
with  the  banks  as  security  for  loans  shall  be  held  by  them  subject 
to  redemption  by  the  borrower  at  his  option,  so  long  as  the  in- 
terest on  such  loans  shall  be  paid  when  due,  provided  however 
that  if  the  interest  upon  any  loans  made  by  any  bank  of  the  depart- 
ment shall  be  and  remain  unpaid  for  the  term  of  ninety  days  after 
the  same  was  payable,  then  and  in  that  case  it  shall  be  the  duty  of 
the  attorney  of  such  bank  to  cause  the  property  held  as  security 
for  such  loan  to  be  sold,  and  from  the  net  proceeds  of  such  'sale  to 
repay  to  the  bank  the  amount  of  such  loan  with  the  interest  and 
expenses  of  sale,  the  remainder  of  such  proceeds  shall  be  paid 
to  the  borrower  upon  his  demand. 

SECTION  14.  They  shall  cause  to  be  kept  full  and  accurate  ac- 
count of  all  the  business  transacted  by  them  in  the  manner  de- 
cided upon  by  the  directors  of  the  department  in  books  to  be  fur- 
nished by  the  parent  bank  directors  and  shall  make  and  send  to 
the  parent  bank  a  quarterly  report  at  the  end  of  every  quarter,  a 
statement  of  all  business  transacted  by  them  during  the  preceding 
quarter  which  shall  set  forth  the  amount  of  each  loan  made,  the 
kind  and  amount  of  security  given  and  the  name  and  address  of 
the  borrower,  the  amount  of  each  loan  redeemed  and  the  amount 
of  interest  collected  thereon,  the  amount  of  money  received  on 
deposit,  the  number  of  certificates  of  deposits  issued  and  the 
names  of  the  payees  thereof,  the  number  and  amount  of  certifi- 
cates of  deposits  redeemed  and  the  amount  of  interest  paid 
thereon. 

They  shall  have  all  the  different  books  of  the  bank  balanced 
and  closed  at  the  end  of  each  day's  work  and  send  a  transcript 
of  the  day's  business  to  the  directors  of  the  parent  bank. 

They  shall  also  make  to  the  parent  bank  all  such  statements 
and  reports  as  shall  be  prescribed  by  the  rules  and  regulations 
of  the  department  directors  and  the  directors  of  the  parent  bank. 


21 

SECTION  15.     Each  director  of  the  parent  bank  shall  receive  as 

his  sole  compensation  for  his  services  the  sum  of  -  dollars 

per  annum,  and  each  of  the  directors  of  the  branch  banks  shall  re- 

ceive as  his  sole  compensation  for  his  services  the  sum  of  - 

-  dollars  per  annum. 

The  directors  of  the  several  banks  in  the  department  shall 
have  authority  to  appoint  all  necessary  subordinates,  agents  and 
employees  and  fix  their  compensation  until  some  system  of 
wages  shall  be  authorized  by  law  or  by  the  department  directors. 

SECTION  16.  The  directors  of  the  branch  banks  shall  receive 
United  States  legal  tender  coin  and  greenbacks  at  their  face  value 
for  redemption  of  all  securities  held  by  them  and  for  interest  on  all 
loans  the  same  as  the  bank  money  is  received  and  if  such  coin  and 
greenbacks  shall  accumulate  in  the  department  to  an  amount  in 
excess  of  its  requirements  the  surplus  thereof  shall  be  paid  to 
this  department  with  such  treasurer,  and  all  such  greenbacks  (not 
the  bank  money)  so  paid  to  such  treasurer  shall  be  by  him  can- 
celled and  destroyed. 

SECTION  17.     The  sum  of  -  -  dollars  is  hereby  appro- 

priated out  of  any  money  in  the  treasury  not  otherwise  appro- 
priated which  may  be  used  by  the  director  of  the  parent  bank  for 
the  purpose  of  securing  locations  and  buildings  suitable  for  bank- 
ing purposes  for  one  or  more  banks  as  may  be  required  and  for 
other  preparatory  work  for  putting  banks  in  working  order. 


1  8.  All  laws  now  in  force  or  which  shall  hereafter  be 
passed  relating  to  the  counterfeiting  of  money  shall  be  applicable 
to  all  moneys  and  all  certificates  of  deposits  authorized  by  this 
Act. 

SECTION  19.  Interest  on  standing  deposits  shall  be  calculated 
from  the  day  of  deposits  to  the  thirty-first  day  of  December  in 
every  year  and  shall  be  added  to  and  become  a  part  of  the  prin- 
cipal unless  drawn  by  the  depositor. 

SECTION  20.  The  officers  engaged  in  the  receipt  of  deposits 
or  payment  of  loans  shall  not  disclose  the  name  of  any  depositor 


22 

nor  the  amount  deposited  or  withdrawn,  except  to  the  directors 
of  the  bank  as  may  be  appointed  to  carry  this  Act  into  operation 
or  as  a  witness  by  order  of  Court. 

SECTION  21.  In  case  any  depositor  shall  die  leaving  a  sum  of 
money  on  deposit  in  any  branch  bank  the  same  shall  only  be 
paid  to  the  executor  or  administrator  on  the  production  of  letters 
of  administration;  any  unclaimed  deposit  shall  after  a  lapse  of 
ten  years  become  Government  property  and  accounted  as  a 
realization  of  the  bank. 

SECTION  22.  If  a  depositor  becomes  insane,  having  on  depos- 
it any  money,  the  directors  may  at  their  discretion  authorize 
payment  from  time  to  time  out  of  the  funds  of  such  depositor  to 
any  person  having  charge  of  him  or  her. 

SECTION  23.  The  interest  regularly  maturing  on  all  Govern- 
ment and  State  Bonds  deposited  as  collateral  security  for  loans 
made  by  any  branch  bank,  shall  be  duly  collected  by  said  banks 
and  charged  by  them  to  the  credit  of  the  borrower. 

SECTION  24.  All  landed  property  acquired  by  the  Govern- 
ment by  foreclosure  under  this  Act,  shall  become  a  part  of  the 
public  domain. 

Bank  Inspection. 

SECTION  25.  The  following  divisions  of  the  Territory  of  the 
United  States  of  America  shall  comprise  four  bank  inspection 
districts,  viz:  The  first  district  shall  include  all  the  States  and 
Territories  west  of  the  Rocky  Mountains  including  New  Mexico, 
Colorado,  Wyoming  and  Montana. 

•  The  second  district  shall  include  all  of  the  Territory  west  of 
the  Mississippi  river,  and  east  of  District  No.  I. 

The  third  district  shall  include  all  of  the  Territory  east  of  the 
Mississippi  river  and  south  of  the  Ohio  river  including  the  State 
of  Maryland  and  Delaware  and  the  District  of  Columbia. 

The  fourth  district  shall  include  all  the  remaining  Territory  of 
the  United  States. 


23 

SECTION  26.  The  President  of  the  United  States  shall  ap- 
point and  commission  yearly  three  competent  persons  as  in- 
spectors for  each  bank  inspection  district. 

Two  shall  form  a  quorum  to  do  business,  their  compensation 

shall  be dollars  with  travelling  expenses 

added. 

Their  bills  shall  be  audited  and  paid  quarterly  by  the  directors 
of  the  parent  bank  from  the  net  proceeds  of  the  banking  depart- 
ment. 

A  pro  rata  shall  be  deducted  from  the  salary  of  an  inspector 
whose  duties  as  inspector  have  not  been  performed. 

SECTION  27.  It  shall  be  the  duty  of  the  bank  inspectors  to 
visit  each  branch  bank  in  their  respective  districts  once  every 
three  months  and  report  to  the  United  States  Treasurer  its  con- 
ditions, viz:  The  number  and  amount  of  its  loans  made  during 
the  preceding  quarter;  the  number  and  amount  of  loans  repaid; 
the  number  and  amount  of  certificates  of  deposits  issued;  the 
number  and  amount  redeemed;  the  amount  of  money  received 
from  the  parent  bank;  what  received  from  all  sources;  what 
loaned;  what  remains;  what  interest  paid  and  received  during 
the  quarter;  amount  of  expense  and  the  general  management 
of  the  bank  and  send  a  copy  of  their  report  to  the  United  States 
Treasurer  and  one  to  the  parent  bank  and  one  to  the  Treasurer 
of  that  State  or  Territory  in  which  said  bank  is  located. 

The  inspectors  of  District  No.  3  shall  also  inspect  the  parent 
bank  and  report  to  the  United  States  Treasurer  its  management 
and  condition,  reporting  all  of  its  general  and  detail  workings. 

SECTION  28.  All  laws  and  parts  of  laws  in  conflict  with  this 
Act  are  hereby  repealed. 

SECTION  29.  No  officer  or  employee  of  any  bank  in  the 
department  shall  be  eligible  to  appointment  as  bank  inspector. 

SECTION  30.  This  Act  shall  take  effect  from  and  after  its 
passage. 


CHAPTER  III. 


BILL  EXPLANATIONS. 

The  bill  above  authorizes  the  organization  of  a  banking  depart- 
ment and  the  making,  circulating  and  redeeming  public  money. 

Here  we  have  a  bank  of  novel  construction,  with  unlimited 
powers  to  perform  the  work  assigned  it  to  do. 

A  bank  that  cannot  be  broken;  that  works  without  selfishness 
for  the  good  of  all;  that  deals  out  financial  justice  to  all;  removes 
all  from  the  grasp  of  shylocks  without  arbitrary  laws  against 
usury. 

A  bank  that  will  supply  a  par  currency  for  the  use  of  the 
people,  made  of  gold,  silver  and  paper  and  all  of  it  worth  at  all 
times,  in  all  parts  of  the  country,  just  one  hundred  cents  to  the 
dollar  in  United  States  gold  coin  no  more  and  no  less. 

A  bank  not  depending  upon  the  wealthy,  nor  the  gold  in  its 
vaults  for  its  existence  but  upon  the  laboring,  the  enterprising, 
and  producing  classes. 

A  bank  whose  currency  would  have  a  more  sure  redemption 
than  any  former  currency  and  always  exchangeable  for  a  certi- 
ficate of  deposit  drawing  interest. 

A  bank  that  can  always  lend  and  always  borrow  (receive  on 
deposit)  and  multiply  its  blessings  to  man,  yet  never  becomes 
exhausted,  but  like  an  intelligent  instructor,  the  more  he  imparts, 
the  more  he  is  able  to  impart,  and  the  profits  of  its  labors  are 
divided  for  the  benefit  of  all. 

The  law  authorizing  the  organization  of  a  banking  department, 
makes  United  States  gold  coin  our  standard  of  value,  and  meas- 
ures of  value  are  to  be  made  of  gold,  silver  and  paper,  all  a  full 
legal  tender,  based  upon  national  and  States  credit  (bonds)  bul- 
lion and  real  estate  and  made  ample  in  amount  to  loan  to  the 
Government,  to  the  States  and  to  every  citizen  who  offers  the 
required  security. 

It  gives  us  Government  banks  of  savings  and  deposits  that 


25 

cannot  be  broken  where  we  can  deposit  our  money  and  have 
it  draw  interest  without  fear  of  loss. 

It  will  produce  the  Government  an  income  variously  estimated 
from  sixty  million  dollars  to  two  hundred  million  annually,  and 
will  save  to  the  people  a  much  greater  sum  by  reducing  interest 
from  7$  to  3$. 

Its  ample  powers  will  protect  us  from  money  panics,  and  from 
shylocks  without  arbitrary  laws  against  usury. 

It  saves  us  from  the  curse  of  money  monopoly. 

This  department  of  our  Government  would  be  the  money 
power  and  all  the  people  stockholders. 

It  is  a  system  of  loaning  and  redemption  that  will  supply  just 
enough  money  at  all  times,  never  too  much. 

It  is  truly  the  Gospel  of  Financial  Salvation,  not  for  bankers 
only,  not  for  manufacturers  only,  not  for  farmers  only,  not  fof 
merchants  only,  not  for  miners  only,  but  for  Government,  for 
the  States  and  for  all  the  people. 

It  supplies  public  money  loaned  direct  to  the  Government, 
to  the  States  and  to  the  people. 

It  gives  us  a  Gold  Standard  as  demanded  by  Republican  and 
hard  money  Democrats,  and  bimetallism  without  awaiting  the 
consent  of  other  nations. 

It  supplies  a  full  tender  Government  bank  note,  redeemed  by 
the  borrower  or  by  his  property  the  same  as  the  National  Bank 
note  is  now  redeemed. 

The  bank  officials  are  authorized  also  to  redeem  our  present 
greenbacks  and  all  treasury  notes  (see  Section  16  of  bill)  this  tak- 
ing them  out  of  circulation  and  relieving  the  Government  from 
the  burden  of  their  redemption. 

It  supplies  a  system  of  Government  Saving  and  Deposit  Bank 
that  cannot  be  broken,  where  the  people  can  deposit  their  money 
and  have  it  draw  interest  without  fear  of  loss  and  have  it  returned 
to  them  upon  demand. 


CHAPTER  IV. 


COMMENTS  ON  BILL. 

It  will  be  seen  upon  careful  inspection  that  certain  results  will 
be  realized  by  the  passage  of  this  bill,  and  among  them  special 
attention  is  asked  for  the  following: 

ist.  The  business  proposed  is  to  be  a  part  of  the  machinery 
•of  the  Government  but  separate  in  its  action  from  and  indepen- 
dent of  most  of  the  work  now  carried  on. 

2nd.  The  money  authorized  by  this  Act  is  of  the  standard  of 
United  States  gold  coin  and  cannot  be  loaned  upon  security  of 
less  than  gold  value,  therefore  it  can  never  be  depreciated,  and 
will  always  command  gold  coins  if  they  should  be  wanted. 

3rd.  The  number  and  location  of  banks  will  be  such  that  the 
benefits  of  this  system  will  be  extended  to  all  parts  of  the  coun- 
try, and  the  method  of  loaning  money  is  such  that  all  of  the  people 
will  have  equal  rights  in  those  benefits. 

4th.  The  system  of  certificates  of  deposit  will  enable  the 
people  to  dispose  in  perfect  safety  and  for  a  fair  interest  of  any 
surplus  which  they  may  have  for  a  short  or  a  long  time.  In 
case  the  volume  of  business  in  the  country  shall  be  reduced  all 
surplus  money  would  at  once  go  out  of  circulation  by  being 
deposited  in  the  banks.  It  would  be  held  in  perfect  safety  and 
would  be  available  for  use  if  required  at  any  hour.  This  makes 
what  has  never  heretofore  existed,  a  gold  standard  currency  so 
perfectly  elastic  as  to  adjust  itself  instantly  to  all  requirements, 
and  while  there  is  never  a  scarcity,  there  is  never  a  plethora  of 
money. 

5th.  The  authority  to  manufacture  and  loan  money  is  un- 
limited, the  exercise  of  that  authority  is  controlled  by  the  re- 
quirements of  business.  Agricultural,  manufacturing  and  com- 
mercial enterprises  will  at  once  feel  the  impetus  of  the  new  era 
in  which  they  may  forecast  their  operations  without  fear  of  a 


27 

squeeze  by  the  money  changers.  The  production  of  wealth 
throughout  the  nation  will  increase  rapidly  as  the  emancipation 
from  financial  panics  become  known  to  the  people. 

6th.  The  measures  proposed  for  the  protection  of  the  Gov- 
ernment are  ample  to  prevent  the  issue  of  a  dollar,  except  upon 
adequate  gold  value  securities  and  none  of  the  securities  can  be 
used  except  for  the  redemption  of  the  currency.  Thus  there 
can  be  no  depreciation  of  value  so  long  as  gold  remains  the 
standard. 

7th.  The  exhaustive  reports  provided  to  be  made  by  all  of  the 
banks,  by  the  department  and  by  the  bank  inspectors  will  fur- 
nish a  vast  amount  of  information  for  statistical  purposes  which 
will  greatly  facilitate  the  transaction  of  the  constantly  increas- 
ing volume  of  business. 

8th.  The  adoption  of  this  system  will  give  permanent  em- 
ployment to  the  large  and  useful  class  of  employers  whose  ex- 
perience in  banks  of  the  present  order  will  be  valuable  in  the 
inauguration  and  operation  of  the  new  methods. 

Among  the  many  benefits  arising  from  the  new  order  of 
things,  moralists,  may  feel  that  it  will  be  a  benevolent  thing  to 
relieve  from  the  temptation  to  cheat  their  neighbors,  the  large 
class  of  non-producing  schemers  who  depend  upon  the  mis- 
fortunes of  the  producers  to  enable  them  to  gather  in  the  largest 
per  cent,  of  the  product. 

It  is  not  proposed  to  pass  any  law  against  usury  or  extrava- 
gant interest  or  to  prevent  financial  fluries  or  money  panics,  or 
any  other  evil  that  afflicts  mankind  through  the  working  of  our 
present  money  systems. 

What  we  do  propose  is,  to  put  this  money  system — this 
finance  machine,  at  work  among  the  evils  named  above,  and  if 
all  are  not  cured  or  prevented  by  it  what  remains  will  be  too 
insignificant  to  attract  attention. 

Neither  do  we  propose  to  legislate  against  banks  now  in  ex- 
istence, they  will  still  be  privileged  to  do  such  business  as  they 
can  secure,  and  it  seems  probable  that  many  commercial  banks 
will  be  wanted,  and  private  money  lenders  will  find  ample  scope 
to  operate  with  personal  notes,  personal  and  other  property  to 
secure  their  loans;  but  if  this  money  system  forces  them  to  do 
business  for  reasonable  returns,  the  masses  of  the  American  peo- 
ple will  not  complain.  If  in  the  course  of  time,  as  the  new  cur- 


28 

rency  fills  the  channels  of  trade,  the  national  banks  find  they 
cannot  eat  their  cake  and  keep  it  to,  the  mourners  will  not  be 
found  among  the  men  of  physical  toil,  who  earn  their  bread  by 
the  sweat  of  their  brows,  or  among  the  enterprising  men,  whose 
brain  work  leads  to  the  successful  accomplishments  of  the  great 
undertakings  which  illustrates  the  progress  of  the  world  in 
knowledge,  and  contributes  to  ameliorate  the  hardships  of  the 
human  race,  and  marks  the  difference  between  the  savage  and 
civilized  man.  This  finance  machine  which  as  may  be  seen  fur- 
ther along  will  abolish  usury  without  usury  laws;  will  equalize 
the  currencies  of  a  country  to  just  100  cents  to  the  dollar,  whether 
said  currency  be  made  of  gold,  silver  or  paper  or  all  of  them, 
and  prevent  money  panics  as  surely  as  the  cutting  off  of  a  dog's 
head  will  kill  its  body. 


CHAPTER  V. 


FURTHER  COMMENTS. 

SECTION  i.  This  section  authorizes  a  Government  banking 
department  to  be  organized  with  parent  bank  and  branches, 
whose  duty  is  to  make,  circulate  and  redeem  public  money,  which 
is  significant  of  a  full  supply  of  money  at  an  approximate  equit- 
able interest  without  the  intervention  of  usurers  or  the  manipu- 
lation of  money  changes.  Thus  liberating  production  and  general 
business  from  their  entire  dependence  upon  private  banks,  or 
other  private  money  lenders. 

It  may  be  further  observed  that  all  currency  made  and  circu- 
lated by  authority  of  this  section  of  whatever  material,  is  made 
money,  not  a  bank  note  to  be  redeemed  in  greenbacks,  nor  yet 
greenbacks  to  be  redeemed  in  some  other  currency,  but  public 
money — money  of  the  United  States,  made,  owned  and  loaned  by 
the  people,  all  of  it  a  full  tender,  a  just  measure  and  a  true  rep- 
resentative of  value,  all  of  it  of  the  same  significance  as  United 
States  coined  gold. 

SECTION  2.  This  section  tells  us  that  its  money  measures 
of  -alue,  shall  be  gold,  silver  and  paper  upon  present  ratios,  all 
a  full  legal  tender;  and  it  also  fixes  the  "standard  of  value." 
Let  me  suggest,  a  "standard"  of  value  should  be  of  one  sub- 
stance, and  must  have  actual  value,  and  by  nature  durable  and 
comparatively  unchangable,  but  "measures"  of  value  may  be 
made  of  many  kinds  of  material,  with  or  without  intrinsic  value. 
As  the  money  value  of  all  measures  of  value  are  regulated  by 
this  bill  to  that  of  the  standard,  so  while  value  is  indispensable 
in  both,  the  standard  must  have  actual  value,  and  the  measures 
legal  value  only  is  required.  Our  Constitution  says  "They  (Con- 
gress) shall  coin  money  and  regulate  the  value  thereof."  Thus 
values  are  fixed  on  revenue  and  postage  stamps  as  well  as  on 
money. 


30 

Money  measures  are  only  representatives  of  value,  not  the 
value  they  represent,  and  no  more  requires  it,  than  a  representa- 
tive at  a  foreign  court,  is  required  to  be  the  whole  country  he 
represents.  By  this  section  United  States  gold  coin  is  made  the 
"standard  of  value"  and  "measures  of  value"  are  made  of  gold, 
silver  and  paper  as  above  stated. 

SECTION  3.  Demands  the  branch  bank  directors  shall  loan 
money  to  the  Government,  to  the  States  and  to  the  people  upon 
securities,  which  shall  consist  of  Government  and  State  bond 
and  bullion  at  90$  of  their  gold  market  value,  and  on  real  estate 
at  not  more  than  one-half  of  its  taxable  value,  and  at  a  rate  of 
interest  not  to  exceed  y/c  per  annum. 

SECTION  4.  Makes  all  branch  banks,  banks  of  savings,  where 
all  sums  of  the  banks'  money  above  five  dollars,  may  be  deposited 
and  draw  an  interest.  Also  fixes  the  rate  of  interest  on  loans 
and  deposits. 

SECTION  5.  The  parent  bank  and  the  branch  banks  together 
constitute  the  banking  department.  All  the  banks  are  provided 
with  three  officers,  viz:  a  president,  a  vice-president  and  an 
attorney.  The  officers  of  the  parent  bank  are  also  the  three 
officers  of  the  department  and  are  a  part  of  the  board  of  direc- 
tors of  said  department,  which  shall  consist  of  said  officers  and 
the  presidents  of  all  the  branch  banks  first  organized  in  each 
State.  The  officers  and  board  of  directors  named  in  this  section 
have  full  charge  under  the  laws  of  Congress  of  all  business  of 
the  department. 

SECTION  8.  The  object  of  this  section  is  not  alone  to  elect 
bank  officers,  but  also  to  make  such  elections  comparatively  non- 
partisan. 

Congress  being  always  composed  of  two  or  more  political 
parties,  and  sometimes  the  Senate  is  dominated  by  one  political 
party  and  the  House  by  another  at  the  same  time,  and  vacancies 
would  sometimes  be  filled  by  one  partisan  president  and  some- 
times by  another. 

The  mode  of  changing  one-third  of  the  officers  every  two 
years  should  be  satisfactory  as  fresh  business  talent  from  the 


people  would  bi-annually  be  flowing  into  the  banks  and  depart- 
ment management,  representing  all  parts  of  the  country 'and  all 
phases  of  politics.  Thus  rendering  it  impossible  for  any  political 
party  to  use  the  influence  of  the  department  for  partisan  ends. 

SECTION  n.  This  section  designates  the  time  and  place  of 
gathering  of  the  department  directors  and  states  their  duties. 

We  can  conceive  of  no  body  of  men  better  qualified  by  ex- 
perience to  perform  the  duties  of  department  directors  than  this, 
body  of  bank  presidents. 

It  is  natural  to  suppose  that  without  a  system  of  rules  and 
regulations  adapted  to  the  detail  management  of  all  the  banks, 
some  will  be  run  and  controlled  more  wisely  and  economically 
than  others,  after  a  system  of  rules  and  regulations  founded  upon 
experience  have  been  adapted  by  the  department  directors,  all 
of  the  banks  will  be  equally  and  wisely  controlled. 

Notwithstanding  the  valuable  services  rendered  by  this  body 
of  men  as  department  directors,  they  only  receive  compensa- 
tion as  bank  presidents,  excepting  traveling  expenses  to  and 
from  their  yearly  gatherings. 

We  will  let  the  other  sections  of  the  bill  speak  for  themselves. 


CHAPTER  VI. 


A   GOVERNMENT  BANKING  DEPARTMENT. 

All  of  the  departments  of  our  Government,  with  their  numer- 
ous bureaus,  depend  upon  money.  Government  efficiency  in 
all  its  enterprises  can  be  assured  only  by  the  use  of  money.  The 
welfare  of  our  seventy  millions  of  people  is  depending  upon  its 
possession;  they  must  have  money  before  they  can  get  food, 
clothing  and  habitations.  Money  is  the  tool  used  to  do  all  busi- 
ness in  communities  of  civilized  society,  since  money  is  the 
moving  force  in  all  business  both  public  and  private,  and  as 
Congress  is  constitutionally  authorized  to  supply  it,  it  would 
seem  wise  for  it  to  adapt  the  best,  the  most  just  and  effectual 
means  of  furnishing  the  money  which  will  enable  all  public 
and  private  business  to  be  done  at  the  least  possible  cost  for  the 
tool  to  do  it  with  without  suffering  the  embarrassment  of  a 
short  supply  and  an  ever  changing  rate  of  interest  maintained 
apparently  for  the  benefit  of  those  whose  only  labor  is  devoted 
to  acquiring  the  wealth  possessed  by  others. 

Money  is  as  essential  to  the  production  of  wealth  and  healthy 
action  in  the  arteries  of  trade,  as  healthy  blood  is  in  the  veins 
and  arteries  of  the  physical  system.  All  wealth  after  it  is  pro- 
duced must  be  measured  and  exchanged  with  money  under  our 
civilization  before  it  becomes  available  to  man,  all  advancement, 
whether  it  be  intellectual,  financial,  moral  or  material,  requires 
money.  After  a  nation  is  organized  and  prosperous  it  cannot 
continue  prosperous  without  money. 

A  banking  department,  organized  as  herein  advocated,  would 
supply,  distribute  and  redeem  the  money  required  for  all  pur- 
poses with  absolute  certainty  and  perfect  safety  for  both  Govern- 
ment and  people.  This  being  public  money  they  would  no  longer 
be  left  to  the  mercy  of  private  money  lenders  who  now  dictate 
not  to  the  people  only,  but  to  the  Government  as  well  the  terms 
upon  which  they  will  permit  money  to  be  used. 


33 

Such  a  department  would  be  a  great  blessing  to  the  people 
in  their  daily  avocations,  and  would  more  perfectly  assure  their 
permanent  prosperity  and  happiness  than  any  and  all  private 
money  systems  and  more  than  any  other  department  of  the 
Government.  The  people  would  suffer  less  by  having  all  mail 
matter  carried  and  delivered  by  private  corporations  than  they 
do  now  by  being  compelled  to  use  exclusively  private  money. 

Four  new  departments  have  been  added  to  the  Government 
since  its  organization,  therefore  precedents  for  adding  another 
are  not  wanting.  The  plan  of  organization  and  operation  as 
laid  out  in  the  bill,  would  be  sufficient  to  inaugurate  the  system 
in  perfect  safety,  after  which  the'  knowledge  gained  in  its  working 
would  doubtless  show  where  and  how  improvements  may  be 
made  in  its  detail  working,  and  the  system  provides  for  its  own 
perfecting. 

The  disastrous  money  panics  which  in  times  past  devastated 
the  business  world  have  always  been  caused  by  money  owners 
withholding  their  money  from  circulation.  Such  panics  could 
never  occur  if  this  department  was  in  operation,  as  then  public 
money  would  be  always  abundant  and  available  for  business, 
though  private  money  be  withheld.  Interest  for  this  depart- 
ment money  would  approximate  3^  per  annum  at  all  times,  while 
interest  for  private  money  in  panicy  times — if  available  at  all — 
ranges  from  7^  per  annum  to  3$  per  month  as  in  1893.  The 
industries  would  flourish,  not  alone  from  the  saving  of  interest, 
but  by  the  impetus  given  to  production  by  being  freed  from 
violent  changes  in  the  cost  of  the  tool  for  producing  products, 
and  the  increase  confidence  in  the  safety  of  business  calculations, 
an  enterprise  which  would  be  hazardous  under  existing  circum- 
stances, with  interest  fluctuating  from  5$  to  2O<£  per  annum,  could 
be  figured  on  with  perfect  safety  if  this  system  was  in  operation, 
as  then  money  would  be  always  available  at  an  interest  approx- 
imating yf>  per  annum. 

This  department  would  not  only  prevent  money  panics,  and 
impart  to  the  people  the  blessings  above  named,  but  would  add 
to  the  income  of  the  Government  a  sum  estimated  from  sixty 
million  dollars  to  two  hundred  million  dollars  annually.  This 
alone  should  justify  the  organization  of  this  department.  Supply- 
ing the  industries  with  just  enough  full  legal  tender  money  at 
all  times  to  do  the  business  of  the  whole  country  and  at  a  rate 


34 

of  interest  approximating  3$  per  annum  and  made  of  gold,  silver 
and  paper  would  be  the  greatest  blessing  conferred  by  this  Depart- 
ment. This  alone  would  be  a  great  feat,  a  feat  that  all  the  banks 
and  private  money  lenders  since  the  formation  of  the  country 
have  failed  to  accomplish,  which  is  another  strong  argument  to 
justify  its  organization. 

The  following  fact  should  also  have  weight  in  favor  of  its 
establishment,  viz:  The  money  question  would  be  forever  settled, 
with  private  money  alone  it  cannot  be  settled.  Now,  year  after 
year,  generation  after  generation,  are  happening  financial  fluries 
in  the  money  market  ''Black  Fridays,"  "money  panics,"  and 
other  evils  arising  from  our  inadequate  system  of  private  money, 
and  a  constant  agitation  is  kept  up  in  Congress  and  out,  over  the 
money  question,  which  keeps  up  a  feverish  apprehension  which 
will  not  down,  and  nothing  but  public  money  will  ever  down  it. 
It  never  can  be  settled  until  it  is  settled  right.  The  inauguration 
of  this  banking  department  would  justly  settle  it  and  for  all  times. 
Our  Constitution  empowers  Congress  "to  establish  post  offices 
and  post  roads,"  and  Congress  has  wisely  interpreted  this  to 
mean  the  gathering,  transporting  and  delivering  the  mails  of  the 
country  and  it  has  organized  a  post  office  department  to  attend 
to  that  important  business.  The  Constitution  has  also  empow- 
ered Congress  "To  raise  and  equip  armies,"  "To  provide  and 
maintain  a  navy,"  and  Congress  has  performed  these  duties  by 
organizing  different  departments  to  preside  over  and  perform 
these  important  duties.  Congress  has  very  properly  organized 
a  department  of  agriculture  without  even  a  hint  from  the  Con- 
stitution directing  it  to  be  done.  These  departments  having  been 
organized  by  Congress  with  only  hints  from  the  Constitution  to 
encourage  it,  it  is  seen  precedents  are  numerous,  and  as  a  bank- 
ing department  for  purposes  herein  specified  would  be  second 
to  none  in  importance  it  should  be  organized  for  the  good  it 
would  do,  supplying  as  it  would  an  ample,  healthy  business  life 
blood,  it  would  enable  the  Government  to  fully  carry  out  its 
Constitutional  money  duty  to  its^f  and  to  the  people,  which  it 
has  never  yet  performed. 

Congress  is  directed  by  the  Constitution  "to  pay  the  debts" 
of  the  country,  to  "borrow  money  on  the  credit  of  the  United 
States."  "To  pay  the  debts"  implies  that  there  is  money  or  means 


35 

available  to  pay  them.  "To  borrow  money  on  the  credit  of  the 
United  States,"  that  money  can  always  be  borrowed  by  the 
Government. 

Yet  history  informs  us  the  timj  »vas  when  Congress  could  not 
pay  the  debts  of  the  Government  because  it  had  no  money,  neith- 
er could  it  borrow  on  the  credit  of  the  United  States  because 
no  money  lender  could  be  found  who  would  accept  the  security. 
So  on  account  of  our  deficient  laws  on  Government  finance,  Con- 
gress could  not  perform  those  two  plain  constitutional  duties 
and  to  prevent  another  similar  humiliating  occurrence  this  bank- 
ing department  should  be  organized  and  put  in  motion,  as  then 
Congress  could  always  borrow  and  pay  the  debts  of  the  United 
States.  Congress  holds  the  constitutional  right  "to  coin  money, 
regulate  the  value  thereof/'  which  surely  is  a  sufficient  hint  to 
justify  it  in  organizing  a  department  to  preside  over  and  attend 
to  the  important  duty  of  coining,  loaning  and  redeeming  money. 
Our  point  is,  Congress  having  wisely  organized  departments  for 
carrying  out  important  provisions  of  the  Constitution  and  or- 
ganized an  important  one  without  even  a  hint  from  the  Constitu- 
tion; Congress  should  take  a  more  vigorous  hold  of  the  supply 
and  distribution  of  money  as  that  is  a  plain  and  important  duty 
placed  upon  Congress  by  the  Constitution  besides  the  efficiency 
of  the  government  and  the  happiness  of  all  our  people  are  de- 
pending upon  money  for  the  just  distribution  of  the  necessaries 
and  luxuries  of  life.  The  duty  is  so  important  it  should  not  be 
shirked,  or  farmed  out  to  private  parties  as  is  now  done,  its  im- 
portance is  so  overwhelming  it  demands  a  department  for  its 
efficient  administration. 


CHAPTER  VII. 

GOVERNMENT  BANKING. 
The  Currency  Wanted  and  How  to  Obtain  It. 

The  Democrats  speaking  through  their  President  in  his  mes- 
sage to  Congress  in  the  paragraph  on  the  repeal  of  the  Sherman 
silver  law,  say:  "Of  course  after  recent  financial  perturbation 
time  is  necessary  for  the  re-establishment  of  business  confidence. 
When,  however,  through  this  restored  confidence,  the  money 
which  has  been  frightened  in  the  hoarding  places  is  returned  to 
trade  and  enterprise,  a  survey  of  the  situation  will  probably  dis- 
close a  safe  path  leading  to  a  permanently  sound  currency 
abundantly  sufficient  to  meet  every  requirement  of  our  increas- 
ing population  and  business.  "In  the  pursuit  of  this  object  we 
should  resolutely  turn  away  from  alluring  and  temporary  ex- 
pedients, determined  to  be  content  with  nothing  less  than  a 
lasting,  comprehensive  financial  plan." 

The  Republicans  Demand. 

The  Republican  party  speaking  upon  the  currency  question 
through  Mr.  Windom,  their  Secretary  of  the  Treasury,  in  his 
great  speech  delivered  just  before  he  was  striken  down  by  death, 
used  the  following  truthful  words: 

"The  ideal  financial  system  would  be  one  that  should  furnish 
just  enough  absolutely  sound  currency  to  meet  the  legitimate 
wants  of  trade  and  have  enough  elasticity  of  volume  to  adjust 
itself  to  the  varying  necessities  of  the  people  could  such  a  medium 
be  secured,  the  grave  commercial  disasters  which  threatens  our 
future  might  be  averted. 

"These  disasters  always  come  when  unusual  activity  in  business 
causes  an  abnormal  demand  for  money,  as  in  the  autumn,  for  the 
movements  of  our  immense  crops. 


37 

'There  will  always  be  great  danger  at  those  times  under  any 
cast  iron  system  of  currency  such  as  we  now  have." 

What  the  People's  Party  Demand. 

"We  demand  a  national  currency,  safe,  sound  and  flexible, 
issued  by  the  general  Government  only,  a  full  legal  tender  for  all 
debts,  public  and  private,  and  that  without  banking  corporations, 
a  just,  equitable  and  efficient  means  of  distribution  direct  to  the 
people  at  a  tax  not  to  exceed  two  per  cent,  per  annum," 
"We  demand  that  postal  savings  banks  be  established  by  the 
Government  for  the  safe  deposits  of  the  earnings  of  the  people." 

The  above  demands  voices  no  doubt  a  large  majority  of  the 
American  people,  so  I  will  not  multiply  quotations,  but  pro- 
ceed to  the  second  part  of  my  subject,  viz:  "How  to  get  the 
kind  of  currency  demanded." 

It  is  evident  could  a  financial  plan  be  secured  and  put  in 
practice  that  would  produce  the  medium  demanded  above,  no 
complaint  could  thereafter  be  made  against  either  the  quality 
or  quantity  of  our  currency  as  it  would  be  sound  in  quality  and 
ample  in  quantity,  every  dollar  worth  as  much  as  every  other 
dollar  for  domestic  use.  No  more  money  fluries  or  money 
panics.  Beyond  question,  the  Enactment  'by  Congress  of  the 
foregoing  bill  would  produce  the  currency  demanded,  as  under 
the  working  of  that  law,  money  would  be  as  cheap  in  outside 
districts — Florida,  Washington  State  and  even  in  Alaska,  as  it 
would  be  in  the  city  of  New  York.  It  would  produce  public 
money  administered  through  a  government  banking  department 
by  loaning  direct  to  the  people,  to  the  States  and  to  the  Gov- 
ernment. 

It  would  give  us  bimetallism  without  the  free  coinage  of 
silver  or  waiting  the  consent  of  other  nations  before  we  could 
enjoy  it. 

The  banks  of  this  department  would  be  savings  banks  as 
well  as  banks  of  issue,  loaning  and  redemption. 

This  law  would  give  us  a  gold  coin  standard  of  value,  and 
endows  all  silver  and  paper  currency  with  the  same  legal  value 
as  the  gold  coin  standard  for  all  domestic  money  purposes. 
This  public  money  is  based  upon  Government  and  State  bonds, 
bullion  and  real  estate. 


A  Broad,  Sound  and  Solid  Base  Surely! 

This  bill  is  the  "survey  of  the  situation  which  discloses  a  safe 
path  leading  to  a  permanently  sound  currency,  abundantly  suffi- 
cient to  meet  every  requirement  of  our  increasing  population 
and  business  and  "a  lasting,  comprehensive 

financial  plan."  In  fact  it  is  itself  that  plan.  Such  should  satisfy 
the  Democrats — or  at  least,  President  Cleveland.  This  is,  "The 
ideal  financial  system  would  be  one  that  should  furnish  just 
enough  absolutely  sound  currency  to  meet  the  legitimate  wants 
of  trade,  and  have  enough  elasticity  of  volume  to  adjust  itself 
to  the  varying  necessities  of  the  people."  It  would  prevent  "The 
grave  commercial  disaster  which  threaten  our  future."  This 
would  do  away  also  with  the  "cast  iron  currency  system  such  as 
we  now  have,"  and  confer  upon  the  nation  a  permanent  gold 
coin  standard  of  value,  and  bimetallism  without  the  free  coinage 
of  silver  or  awaiting  a  permit  of  other  nations  before  we  could 
enjoy  it. 

It  would  give  us  "a  national  currency,  safe,  sound  and  flexible, 
issued  by  the  general  government  only,  a  -full  legal  tender  for 
all  debts,  public  and  private."  *  *  "A  just,  equitable  and 
efficient  means  of  distribution  direct  to  the  people,"  to  the  States 
and  to  the  Government,  at  a  tax  not  to  exceed  three  per  cent. 
per  annum.  It  would  give  us,  "government  savings  banks  for 
the  safe  deposit  of  the  earnings  of  the  people." 

Under  the  working  of  the  bill  if  enacted,  money  would  be 
as  cheap  in  all  outside  districts — Florida,  Washington  State  and 
even  in  Alaska  as  it  would  be  in  the  city  of  New  York. 

The  banking  department  provided  for  in  the  bill  when  put 
in  motion  will  pay  its  own  way,  and  yearly  produce  an  income 
for  the  use  of  the  Government,  variously  estimated  from  forty 
million  to  two  hundred  million  dollars,  and  save  to  the  people  a 
much  larger  sum  by  reducing  interest  from  an  average  of  7^ 
to  3$  per  annum. 

Now  that  all  political  parties  have  united  as  to  the  kind  of 
currency  they  want,  and  a  plan  formulated  in  the  shape  of  a 
bill  for  its  production,  the  bill  should  be  enacted  without  delay 
and  thus  settle  once,  and  for  all  time  the  money  question. 


CHAPTER  VIII. 


PUBLIC  AND  PRIVATE  MONEY  CONSIDERED  AND 

COMPARED. 

Definition  of  the  two  kinds  of  money. 

Private  money  is  money  owned  by  individuals,  firms,  cor- 
porations, States,  etc.,  held  in  possession  or  loaned  by  its  owner. 
Public  money  is  money  created,  owned  and  loaned  by  the  people. 
It  is  the  object  of  the  foregoing  bill  to  create  and  loan  public 
money  only.  It  must  be  observed  that  no  matter  what  the 
borrower  may  do  with  this  money,  the  people  will  continue  to 
receive  an  income  from  it  until  it  is  returned  to  the  government 
bank  as  the  above  bill  provides.  Such  would  be  public  money 
and  redeemed  by  the  borrower  or  by  his  property  the  same  as 
the  National  Bank  note  is  now  redeemed. 

It  is  the  hoarding  of  private  money  that  has  caused  our  busi- 
ness depression,  and  money  scarcity  the  past  eight  years.  There 
was  undoubtedly  enough  private  money  to  do  the  business  of  the 
country  during  these  years,  could  it  have  been  circulated,  but 
that  could  not  be,  as  there  was  no  law  natural  or  enacted,  that 
could  force  its  circulation  if  its  owners  refused.  In  the  case  of 
public  money  this  could  not  happen  as  it  would  circulate  upon 
demand  in  pursuance  of  law  in  all  parts  of  the  country  at  the 
same  rate  of  interest  in  large  or  small  sums. 

Private  money  only  circulates  as  its  owner  wills,  and  upon 
the  terms  its  owner  demands — a  troublesome  and  costly  system 
it  has  always  proved  and  must  continue  to  be,  unless  public 
money  is  produced  as  an  auxiliary  to  give  it  tone,  and  thus  drive 
away  its  timidity.  By  public  money  only  can  the  money  question 
ever  be  settled,  and  when  so  settled  it  will  bring  financial  in- 
dependence to  our  country  and  be  one  of  its  safe  guards. 

Private  money  has  failed  to  settle  the  money  question  the 
past  hundred  years,  and  during  that  time  it  had  no  opponent, 
no  enemy,  and  was  always  manipulated  by  its  friends. 


40 

Private  money  as  a  business  tool  invites  panic  and  misery, 
and  both  have  visited  us  every  few  years  because  of  it.  Such  a, 
money  calamity  as  has  afflicted  us  the  past  eight  years  would 
not  be  possible  under  a  properly  regulated  system  of  public 
money  such  as  the  above  bill  provides,  as  under  it,  money  would 
be  always  obtainable  at  a  uniform,  equitable  rate  of  interest, 
approximating  three  per  cent,  per  annum,  whereas  under  our 
present  system  of  private  money  interest  ranges  from  six  pei 
cent,  per  annum  to  three  per  cent,  per  month  and  often  not  to  be 
had  even  at  those  rates  with  good  security,  and  this  while  money 
invested  in  the  industries  yields  an  average  of  less  than  three 
per  cent,  per  annum  as  per  statistics. 

It  may  be  right  for  money — a  product  of  law — to  be  so  favored 
by  law,  as  to  produce  for  its  owner  twice  or  thrice  as  much  at 
interest  as  it  would  yield  invested  in  the  industries.  It  may  be 
right,  but  we  fail  to  see  it.  It  seems  a  wrong  view  of  political 
economy  to  favor  by  law  the  idle,  at  the  expense  of  the  in- 
dustrious, seeing  all  our  progressive  greatness  is  produced  by 
labor.  The  law  should  favor  the  industrious  producer,  instead  of 
the  idle  consumer,  as  it  now  does,  by  enabling  him  to  demand 
and  obtain  a  usurious  interest  for  money,  and  upon  it  fares 
sumptuously  every  day  in  idleness. 

This  is  a  strong  reason  why  public  money  should  be  produced 
and  loaned  at  about  an  equitable  interest  of  three  per  cent,  per 
annum,  this  would  relieve  all  production  and  all  business  from  all 
interests  exactions  that  are  greater  than  the  average  net  income 
of  the  industries.  This  should  settle  the  rate  per  cent,  for  public 
money. 

Such  would  be  genuine  political  economy,  and  would  act  as  a 
wet  blanket  on  all  private  money  lenders  who  demand  a  greater 
interest  than  public  money  drew. 

It  would  prevent  high  and  usurious  interest  the  same  as  the 
post  office  efficiency  has  prevented  express  companies  from 
continuing  to  charge  10,  25  or  50  cents  for  carrying  each  letter. 
This  would  prevent  usury  without  usury  laws.  All  usury  laws 
could  be  stricken  from  the  statute  books  and  no  evil  result  there- 
from. Public  money  as  demanded  by  the  bill  above  referred  to, 
would  prevent  all  usury,  and  be  an  effectual  lever  to  persuade 
those  commanding  large  sums  of  money  to  invest  it  in  some 
enterprise,  hoping  by  coupling  it  with  their  labor  and  skill,  to 


41 

realize  from  it  a  larger  income  than  by  loaning  it.  Thus  the 
now  idle  usurer  could  find  employment  and  become  a  producer. 
So  while  the  manipulation  of  private  money  has  enabled  Roth- 
schilds and  others  to  amass  fabulous  fortunes  from  money  be- 
longing to  others  and  pose  as  one  of  the  money  kings  of  the  world. 
Public  money  administered  through  government  banking  depart- 
ment as  provided  for  in  the  bill  referred  to  would  change  all  this 
in  the  United  States,  by  preventing  such  vast  accumulations 
of  private  wealth  by  usury  and  interest  for  private  money,  as 
the  people  who  create,  own  and  loan  public  money  would  be  the 
money  power,  private  money  owners  would  deposit  their  money 
in  the  government  banks  of  savings,  and  thus  save  the  millions 
of  dollars  they  now  lose  yearly  by  the  failure  of  private  banks. 

The  people  being  the  owners  of  this  government  banking 
department,  its  net  interest  accumulations  would  be  a  revenue 
belonging  to  the  people  to  be  used  to  pay  their  government 
expenses,  pay  its  debts,  make  public  improvements,  etc. 

The  blessings  that  public  money  would  confer  on  our  great 
American  nation  no  man  is  competent  to  perceive  and  number 
at  this  early  date,  I  have  discovered  and  numbered  over  fifty  and 
new  ones  are  appearing  as  I  search  more  deeply  into  the  subject, 
I  feel  gratified  to  be  able  to  say  I  have  not  discovered  a  single 
drawback  or  weakness  in  the  working  of  the  principle  of  public 
money,  or  any  unanswerable  argument  during  my  twenty-three 
years'  study  of  the  subject.  The  blessings  to  be  derived  from 
public  money  become  more  clear,  and  appear  of  greater  im- 
portance and  multiply  in  number  as  time  rolls  on.  The  argu- 
ments in  its  favor  are  so  numerous  and  unreputable.  I  am  sur- 
prised that  a  principle  fraught  with  so  many  blessings  as  public 
money  would  have,  loaned  direct  to  the  Government,  to  the 
States  and  to  the  people  that  all  civilized  nations  have  not  en- 
joyed it  ere  this,  particularly  the  people  of  the  United  States, 
whose  Government  was  formed  by  the  people,  for  the  people,  not 
for  bankers  only,  or  for  the  benefit  of  any  particular  class. 

The  only  plausible  reason  why  the  people  have  not  enjoyed 
the  inestimable  blessing  of  public  money — which  is  theirs  by 
inheritance — is,  they  did  not  know  it  was  within  their  reach, 
neither  did  they  comprehend  the  great  difference  existing  be- 
tween public  and  private  money,  but  the  people  are  now 


42 

awakening — though  slowly — to  see  their  rights  and  their  great 
loss  brought  on  them  by  the  exclusive  use  of  private  money 
which  has  produced  idleness  and  misery  by  reducing  honest 
American  citizens  by  scores  of  hundreds  from  being  home  own- 
ers, to  tenants,  day  laborers  or  tramps.  If  there  is  anything 
under  our  civilization  that  will  or  can  arrest  these  demoralizing 
evils  it  is  public  money  as  provided  for  by  the  above  bill. 

From  the  first  inauguration  of  public  money,  money  monopoly 
would  cease  or  be  rendered  harmless,  and  usurious  interest  would 
receive  its  death  blow,  yet  without  any  law  against  usury.  The 
people  being  relieved  from  these  two  oppressive  burdens,  busi- 
ness would  revive,  the  idle  find  employment  and  plenty,  their 
hearts  would  swell  with  thankfulness,  and  so  a  better  spirit  would 
prevail  among  the  people. 

No  one  will  be  a  patriotic  enthusiast,  or  look  up  with  a  thank- 
ful heart  to  the  Giver  of  all  good,  who  is  driven  from  his  home 
by  his  country's  unwholesome  laws,  being  without  a  home,  starv- 
ed, disgracefully  clad,  with  his  family  in  like  condition,  and  no 
relief  in  sight.  This  condition  is  forced  upon  scores  of  thousands 
of  our  fellow  citizens  whenever  and  wherever  a  financial  scare 
happens  among  the  owners  of  private  money. 

Undoubtedly  there  are  more  people  evicted  from  their  homes  in 
America  for  non-payment  of  interest  the  past  eight  years,  than 
have  been  evicted  from  rented  homes  in  Ireland  the  past  twenty 
years.  While  the  evictions  from  American  homes  are  far  more 
numerous  and  heart  rendering  they  seem  to  enlist  but  little 
sympathy  and  seldom  noticed  by  the  general  public,  save  through 
the  sheriff's  advertisements.  The  evictions  in  Ireland  for  non- 
payment of  rent  on  the  contrary  seem  to  enlist  the  sympathy 
of  the  civilized  world.  It  is  easily  seen  how  honest,  economical, 
hard  working  families  may  get  into  debt  by  loss  by  fire,  by  flood, 
by  drougth,  by  rust,  by  endorsement  for  friends,  by  sickness, 
by  death  or  some  other  unavoidable  calamity  which  may  force 
them  to  borrow  some  money  to  tide  over  their  misfortune. 
There  being  no  public  money  available  forces  them  to  borrow 
from  private  owners  and  upon  their  terms,  which,  for  such  as 
are  under  misfortune's  cloud,  interest  ranges  from  12  to  30  per 
cent,  per  annum,  and  paid  in  advance.  These  mortgages  being 
for  small  sums,  the  givers  are  sure  they  can  repay  the  money 


43 

and  interest  by  hard  work,  vain  hopes.  No  intentions,  however 
honest,  or  labor  though  long  continued,  is  equal  to  an  interest  of 
15$  per  annum,  and  as  the  average  net  income  of  American 
farms  is  less  than  3^  per  annum  as  per  statistics,  it  is  only  a 
question  of  time  when  evictions  must  surely  take  place.  Money 
at  interest  upon  farms  and  drawing  15^  interest  while  the  farm 
nets  less  than  3^  cannot  foster  very  bright  hopes  in  the  borrower, 
it  will  press  heavily  until  evictions  relieves  him. 

This  pernicious  principle  works  against  American  homes  and 
violently  and  rapidly  decreases  them  faster  than  they  are  multi- 
plied upon  the  public  lands.  Being  driven  from  home  is  not  all 
tne  evil  arising  from  evictions,  its  results  are  worse,  even  dread- 
ful to  contemplate.  Families  evicted  from  the  homes  they  had 
built  up,  that  furnished  shelter,  comforts  and  employment  for 
all,  are  by  the  eviction  forced  out  to  suffer,  with  hunger,  head- 
ache, and  heartache  arising  from  forebodings  of  evil,  compelled 
to  become  tenants,  day  laborers  or  tramps — the  latter  the  father 
must  become  if  no  labor  can  be  found — the  mother  and  children 
separated,  driven  for  food  and  shelter  to  serve  among  strangers 
without  sympathy.  The  children  to  grow  up  without  parental 
love,  council,  care,  schooling  or  other  social  advantages.  These 
evictions  and  their  effects  form  a  picture  disgraceful  to  our  coun- 
try and  its  civilization,  being  mostly  brought  on  the  country  by 
the  enforced  use  of  private  money.  It  may  be  readily  seen,  that 
public  money  been  available  at  a  3$  interest  according  to  the 
spirit  and  wording  of  the  bill  referred  to,  not  two  per  cent,  of 
the  evictions  from  American  homes  for  non-payment  of  in- 
terest would  have  taken  place.  So  if  our  national  law  makers 
are  anxious  that  every  American  family  should  have  a  home 
and  retain  it,  they  should  enact  the  within  bill  and  thus  prevent 
the  big  fish  from  devouring  the  little  ones.  No  kind-hearted 
people  will  contemplate  the  above  picture  without  feelings  of 
commiseration  for  the  afflicted  and  a  holy  desire  to  prevent  such 
afflictions  if  within  their  power.  I  hope  these  pages  will  clearly 
show  how  the  people  can  remove  these  national  afflictions  by 
resuming  their  plenary  power  over  the  making  and  circulating 
of  money. 

It  must  not  be  supposed  that  public  money  would  entirely 
abolish  poverty,  as  idleness,  intemperance,  debauchery  and  other 
evils  will  nourish  poverty  among  us. 


44 

It  is  not  for  these  I  plead,  their  relief  is  in  their  own  hands, 
but  it  is  for  the  unfortunate,  the  business  man,  the  industrious 
family,  the  wealth  producers  of  the  country  that  misfortune 
has  overtaken  that  I  plead.  The  law  can  help  these,  as  they 
only  want  time  and  money  at  an  equitable  interest  to  enable  them 
to  work  through  and  retain  their  business,  their  homes  and  their 
respectability,  with  all  that  they  imply.  .  Public  money  would 
enable  this  to  be  done  but  private  money  being  the  source  of 
this  national  affliction,  and  also  of  money  flurries  and  money 
panics,  no  permanent  relief  can  be  looked  for  from  that  quarter, 
even  should  more  National  Bank  currency  issue,  and  the  free 
coinage  of  silver  be  inaugurated,  or  more  greenbacks  be  issued; 
these  being  all  private  money,  one  or  all  of  these  may  be  liberally 
used,  yet  the  money  question  will  not  be  settled.  No  private 
money  system  can  ever  settle  the  question  or  prevent  the  re- 
currence of  another  financial  condition  as  now  confronts  us, 
and  from  which  the  country  has  suffered  mentally,  physically 
and  financially  the  past  eight  years. 

Private  money  as  now  manipulated,  is  a  Shylock  money,  always 
demanding  the  pound  of  flesh  cut  nearest  the  heart. 

The  money  question  can  only  be  permanently  and  justly  set- 
tled by  the  people  themselves,  acting  through  their  proper  con- 
stituted agent,  a  government  banking  department.  The  people 
must  take  charge  of  their  own  monetary  affairs,  making,  coining, 
loaning  and  controlling  their  own  monetary  affairs  through  their 
own  instrumentalities  and  thus  abolishing  the  business  of  issuing 
private  currency  by  corporations,  and  private  money  by  the  free 
coinage  of  gold  and  silver.  That  is  the  people  must  strike 
out  on  a  distinctive  American  money  policy,  as  they  have  in 
their  form  of  Government,  and  be  no  longer  controlled  by  the 
money  systems  of  Europe  than  they  are  by  their  systems  of  gov- 
ernments. Then  the  money  question  will  be  justly  settled.  Then 
government  bank  notes  will  be  issued,  and  gold  and  silver  coined 
by  the  people,  for  the  people,  instead  of  by  the  people  free  for 
individuals. 

The  definition  of  public  money  as  defined  in  the  opening  of  this 
chapter  constrains  one  to  believe  the  luxury  of  public  money 
was  never  enjoyed  by  the  people  of  the  United  States.  It  is 
true  the  greenback  is  thought  by  many  to  be  public  money,  but 
a  moments  reflection  must  dispel  this  idea.  It  is  true  the  Gov- 


45 

ernment  issued  it,  but  it  expended  it  for  its  own  necessities,  the 
same  as  it  did  any  other  revenue,  and  by  so  doing  parted  with 
all  ownership  in  the  money.  It  is  private  money  to  all  intents 
and  purposes  and  was  issued  for  the  private  use  of  the  Govern- 
ment. If  the  Government  had  loaned  it,  it  would  still  be  public 
money  according  to  the  above  definition. 

Having  said  this  much  respecting  the  difference  between  pub- 
lic and  private  money,  I  will  now  compare  the  two  more  closely, 
and  as  the  greenback  is  considered  as  good  as  gold  coin  for 
domestic  use,  and  much  preferred  to  silver  coin  for  general  busi- 
ness I  will  compare  with  the  greenback. 

ist.  The  greenback  being  limited  in  amount  becomes  thereby 
a  Shylock  currency  like  the  precious  metals  and  like  them  may 
be  cornered,  hoarded  and  monopolized  to  the  great  injury  of 
business. 

Public  money  cannot  be  monopolized.  It  is  always  available 
to  those  who  have  the  security. 

2nd.  The  greenback  cannot  be  circulated  only  at  the  will  of 
its  owner,  and  upon  the  terms  its  owner  demands. 

Public  money  can  be  distributed  at  all  times  to  rich  and  poor 
alike  who  have  the  required  security,  in  large  or  small  sums 
in  all  districts  of  the  country  at  the  same  rate  per  cent. 

3rd.  The  greenback  is  not  a  representative  of  value  as  all 
money  should  be.  It  was  paid  out  for  salaries  to  soldiers,  sailors 
and  other  employes  of  the  Government,  paid  for  ammunition, 
fire-arms,  horses,  ships  and  other  Government  necessities  for 
prosecuting  the  war,  all  being  of  a  perishable  nature,  have  long 
since  ceased  to  exist  and  of  course  cannot  be  represented,  thus 
depriving  the  greenback  of  one  essential  money  qualification. 

Public  money  is  always  a  true  representative  of  value,  as  it  is 
all  loaned  upon  durable  property  which  is  held  by  the  banks  for 
the  redemption  of  the  money  they  loan,  the  same  as  the  Treasurer 
now  hold  Government  bonds  to  insure  the  redemption  of  the 
National  Bank  notes.  As  long  as  there  is  a  dollar  of  public 
money  in  circulation  so  long  will  the  property,  the  money  rep- 
resents be  held  for  its  redemption. 

4th.  This  public  money  is  all  surely,  acceptably  and  finally 
redeemed  by  the  borrower  or  by  his  property,  without  Govern- 
ment gold,  Government  bonds  or  other  Government  aid. 

Not  so  the  greenback  as  over  one  thousand  million  of  them 


46 

and  other  treasury  notes  were  redeemed  by  Government  bonds 
and  the  bonds  are  yet  a  burden  upon  the  Government,  and  one 
hundred  million  dollars  of  gold  coin  has  been  hoarded  in  the 
treasury  at  great  expense  to  redeem  the  remaining  part.  To 
state  it  a  little  clearer,  the  borrower  or  his  property  redeems  public 
money  but  the  Government  redeems  the  greenback. 

5th.  This  public  money  would  yield  the  Government  yearly, 
a  revenue  variously  estimated  from  sixty  million  dollars  to  two 
hundred  million. 

The  greenback  yields  nothing  and  as  shown  above  is  a  con- 
tinual expense. 

6th.  Public  money  could  always  be  borrowed  at  about  an 
equitable  interest  of  3$  per  annum. 

The  greenback  if  it  can  be  borrowed  at  all  is  like  coin,  demand 
all  a  usurer  can  get  out  of  it,  ranging  from  6$  per  annum  to 
3$  per  month. 

7th.  The  greenback  are  bills  payable  by  the  Government  in 
gold  coin. 

Public  money  are  bills  payable  by  the  borrower  to  the  Government 
with  an  interest. 

A  Big  Difference  Truly. 

8th.  The  greenback  was  put  in  circulation  without  security, 
save  Government  credit.  Public  money  as  provided  for  in  the 
bill  is  secured  upon  specific  property  of  the  most  durable  kind 
as  well  as  Government  credit. 

9th.  The  greenback  is  not  elastic,  has  no  power  to  increase 
or  decrease  to  accommodate  the  increase  or  decrease  of  trade. 
Public  money  would  have  those  powers  without  limit.  It  will 
increase  upon  demand  and  decrease  when  no  longer  wanted 
in  production  and  trade  channels  without  rendering  its  with- 
drawal a  disturbing  element. 

loth.  Whether  private  money  be  scarce  or  abundant,  there 
would  always  be  enough  of  this  public  money  available  for  all 
domestic  money  purposes,  never  too  much  or  too  little.  Of 
greenbacks  this  cannot  be  said. 

nth.  The  greenback  is  just  now — 1897 — an  onerous  burden 
upon  the  Government  by  its  being  compelled  to  provide  gold  to 
exchange  for  greenbacks  when  demanded. 


47 

This  in  addition  to  the  yearly  expense  of  retaining  one  hundred 
million  of  gold  in  its  treasury  for  greenback  redemption.  This 
public  money  instead  of  being  a  burden  will  yield  the  Govern- 
ment a  perpetual  revenue. 

I2th.  The  greenback  was  issued  as  a  temporary  measure  to 
relieve  the  Government's  pressing  necessities.  This  public  money 
will  be  a  permanent  currency  and  will  relieve  both  the  Govern- 
ment and  the  people,  and  will  surely  settle  the  money  question. 

We  will  discuss  the  advantages  of  public  money  over  private, 
no  further  under  the  above  heading,  believing  when  the  American 
people  shall  fully  realize  the  great  advantage  to  them  of  public 
money,  no  political  party  will  thereafter  demand  more  private 
money  by  the  free  and  unlimited  coinage  of  gold  and  silver, 
the  further  issue  of  greenbacks,  National  Bank  notes  or  to  multi- 
ply private  money  in  any  way.  They  will  demand  public  money 
every  time  and  all  the  time,  as  it  will  restore  to  the  people  their 
constitutional  right  to  make,  own  and  loan  money,  a  right  they 
never  yet  enjoyed. 


CHAPTER  IX. 


THE  GOOD  TIME  COMING. 

The  day  is  coming  when  a  half  ounce  letter  will  go  anywhere 
in  these  United  States  for  one  cent,  a  telegraph  message  of  ten 
words  for  three  cents,  a  ton  of  rail  weight  for  five  mills  per  mile, 
a  first  class  passage  for  one  cent  per  mile,  and  no  railroad 
"strikes."  Money  will  be  three  per  cent,  per  annum  interest, 
or  less,  and  to  be  obtained  in  all  States  and  Territories,  at  all 
times  at  the  same  rate  and  all  of  it,  always  worth  one  hundred 
cents  to  the  dollar  in  United  States  gold  coin,  no  more,  no  less, 
no  "money  panics,"  no  more  foreign  absorption  of  Government 
or  State  bonds  for  borrowed  money.  The  money  power  will  be 
this  government  banking  department,  and  all  the  people  its  stock- 
holders. The  enactment  of  the  bill  above  referred  to,  would  make 
possible  all  of  the  above  predictions,  by  enabling  this  banking 
department  to  supply  money  for  all  the  legitimate  requirements 
of  trade  and  production. 

Making  it  possible  for  Government  to  buy  or  build  and  operate 
all  long  and  important  railroads  and  telegraph  lines  in  these 
United  States  without  running  the  country  into  debt.  It  will 
readily  be  perceived  that  a  money  that  will  impart  such  great 
blessings  to  man,  must  be  public  money  produced,  owned  and 
loaned  by  the  people,  in  pursuance  of  law. 

It  would  be  the  grandest  co-operation  principle  the  country 
ever  enjoyed,  where  every  citizen  would  co-operate  for  the  good 
of  all. 


CHAPTER  X. 


MONEY. 

Money,  when  studied  in  all  its  bearings  of  blessings  and 
powers,  presents  to  the  student  one  of  the  most  important  and 
happy  mediums  ever  conferred  by  a  Government  upon  any  peo- 
ple; and  were  it  possible  that  ''money"  with  all  its  advantages 
could  be  presented,  the  unthinking  would  exclaim,  "impossible 
that  mortal  man  could  invent  anything  of  so  much  importance!" 
Money  being  the  moving  power  in  all  enterprises  of  productive 
industry,  trade  and  commerce,  it  behooves  the  government  to  do 
its  duty  and  provide  the  "needful,"  the  "life  blood  of  business" 
in  amounts  sufficient  to  supply  every  demand,  that  production 
may  not  be  checked,  or  trade  crippled  with  a  short  or  a  too 
costly  supply. 

Money  is  not  only  a  "measure  of  value,"  a  "representative  of 
value,"  a  "machine  to  float  value,"  a  "tool  to  work  with,"  an 
"instrument  of  commerce,"  as  is  stated  by  other  writers,  but  it  is 
also  the  connecting  link  between  man  and  the  undeveloped  ele- 
ments. Under  our  laws,  wealth  can  no  more  be  created  or  drawn 
from  the  elements  without  money  than  an  engine  can  draw  a 
train  of  cars  without  the  connecting  link  to  fasten  them  together. 

Please  look  at  the  following  illustration:  America  is  said  to 
be  "a  land  choice  above  all  other  lands  of  the  earth,"  and  the 
United  States  the  "garden  spot  of  America."  Truly  rich  in  ele- 
ment wealth — air,  earth,  water,  light,  heat  and  space — with  their 
mineral  and  vegetable  wealth  and  other  properties  sufficient  to 
sustain  comfortably  one-third  of  all  the  inhabitants  of  the  earth, 
without  crowding  or  tramping  upon  each  others'  rights.  Yet 
with  only  70,000,000  people  we  find  destitution  and  much  suffer- 
ing in  this  land  of  plenty.  It  is  the  opinion  of  the  author  of  the 
New  Encyclopedia  Brittanica,  and  other  publications,  in  which 
we  fully  concur,  that  if  the  natural  resources  of  America  were 
fully  developed  they  would  afford  sustenance  for  3,600,000,000 


So 

inhabitants.  Assuming  the  above  statement  as  approximately 
correct,  the  United  States  should  sustain  at  least  500,000,000  as 
her  share  of  that  number — a  figure  not  improbable,  as  some  of 
the  old  countries  sustain  a  proportionate  greater  number.  Yet, 
with  all  the  element  wealth  above  referred  to  and  only  a  tenth 
of  the  inhabitants  that  could  be  comfortably  sustained  by  it, 
tens  of  thousands  are  suffering  for  the  necessaries  of  life;  no 
work,  no  business,  few  comforts ;  the  raw  material  is  unused, 
and  the  elements  of  wealth  undeveloped,  laborers  are  striving 
with  each  other  for  a  mere  subsistence,  and  trying  to  prevent 
more  laborers  from  landing  upon  our  shores.  They  honestly 
believe  if  more  arrive,  their  chances  of  employment  must  be 
further  curtailed.  Let  me  here  ask,  what  is  the  reason  that 
70,000,000  of  people  cannot  be  comfortably  sustained  in  these 
United  States  without  government  financial  disasters,  general 
bankruptcies,  and  individual  physical  suffering  for  the  necessaries 
of  life?  I  will  briefly  answer  the  question.  The  laws  of  our 
country  require  that  we  buy,  sell,  receive  dues  and  pay  debts, 
tariffs,  taxes,  etc.,  in  money,  thus  making  money  necessary  not 
only  in  all  our  business  relations  to  exchange  our  labor  and 
products,  but  make  it  the  connecting  link  between  the  brain, 
skill,  and  muscle  of  man  on  one  side,  and  the  elements  that  are 
so  rich  with  human  comforts  on  the  other.  As  matters  are  now 
arranged,  man  may  suffer  and  starve  in  the  midst  of  plenty;  at 
the  same  time  he  may  possess  intelligence,  physical  strength, 
skill  and  will,  those  essential  qualities  that  create  human  comforts 
from  the  elements  and  mark  the  difference  between  the  savage 
and  civilized  man,  yet  with  all  his  qualifications  he  suffers  with 
anxieties  for  creature  comforts  which  he  is  so  able  and  willing 
to  create ;  but  money  being  wanted  there  is  no  connection  between 
him  and  the  undeveloped  elements  that  surround  him. 

Tradition  as  well  as  law  forces  this  condition  of  things  upon  the 
people.  It  is  money,  money,  money:  everything  must  be  done 
with  money.  Farms,  factories  and  mines  may  be  numerous, 
yet  neither  they  nor  their  product  can  be  used  without  money. 
How  important  then  that  money  should  be  issued  and  distributed 
sufficient  for  all  purposes.  And  we  believe  that  governments  are 
more  deficient  in  their  system  of  distribution  of  money,  than  in 
a  short  supply — for  money,  like  water  and  manure  becomes 
valuable  by  being  distributed.  The  bill  herein  is  unobjectionable 


in  its  supply,  and  perfect  in  its  system  of  distribution;  and  being 
distributed  by  sovereign  authority  all  the  people  share  in  the 
profits. 

Less  than  forty  years  ago  in  California  money  was  almost 
unknown,  certainly  unseen  by  many  for  months  at  a  time.  Yet 
by  a  custom  then  prevailing  among  the  people,  an  anaka  of 
wheat  and  a  bullock  hide  passed  for  two  dollars  each,  and  a  bar  of 
soap  (made  by  most  farmers)  one  real  each,  as  legal  tender,  the 
same  as  gold  and  silver  money.  Now  we  have  no  such  traditional 
practices;  no  farmer  or  manufacturer  can  pay  his  help  from  the 
product  of  his  farm  or  factory,  and  no  grocer  or  trader  would 
accept  such  as  money  for  supplies.  Money,  money,  money,  the 
law  and  custom  compels  all  to  pay  and  all  to  receive.  Now 
even  gold  and  silver  is  objected  to  if  it  is  not  of  full  weight  with 
the  merchants.  Currency  rightly  instituted  and  properly  distri- 
buted, is  the  one  thing  needful  for  healthy,  domestic  exchange, 
and  constant,  lively  and  permanent  business.  The  following 
quotation  from  Jonathan  Duncan's  work  entitled,  "Bank 
Charters,"  shows  the  middle  ground  occupied  by  money,  its 
power  to  connect  labor  with  the  raw  material,  etc.  Daniel  de 
Lisle  Brock,  Governor  of  Guernsey  was  waited  upon  by  a  depu- 
tation of  the  principal  townsmen  of  St.  Peters,  who  requested 
his  countenance  and  assistance  toward  the  erection  of  a  covered 
market,  much  wanted  in  that  place.  The  Governor  readily  con- 
sented, and  asked  in  what  way  he  could  assist  them  most  effec- 
tually. He  was  informed  the  principal  difficulty  was  to  raise  the 
required  funds.  The  Governor  replied,  if  that  was  the  only  diffi- 
culty he  thought  he  could  surmount  it,  but  would  first  ask,  if 
they  had  the  required  amount  of  stores  of  brick,  timber,  granite, 
and  flags;  but  above  all  had  they  the  skilled  artisans  and  laborers 
required  for  the  building  of  the  market.  They  replied,  there  is 
no  want  of  labor  or  raw  material ;  that  their  difficulty  was  chiefly 
financial.  "Oh!"  said  the  Governor,  "if  that  is  all  you  want,  I 
will  as  Governor,  sign,  stamp,  declare  legal  tender,  and  issue 
five  thousand  one  pound  market  notes;  with  these  to  pay  for 
material  and  labor,  go  to  work  and  build  your  market."  In  pro- 
cess of  time  the  market  was  finished. 

It  will  be  observed  in  this  case  that  money  was  the  connecting 
link  that  enabled  the  laborers  and  skilled  artisans  to  organize  or 
build  the  raw  material  of  brick,  granite,  etc.,  into  a  market,  and 


52 

without  the  currency  the  laborers  would  not  have  been  employed, 
nor  the  raw  material  appropriated  in  the  construction  of  the 
market  for  the  use  of  the  people  of  Guernsey.  Even  so  the 
United  States  or  these  Islands  have  no  lack  of  raw  material  or 
element  wealth,  nor  laborers,  nor  skilled  artisans,  to  construct, 
to  develop  and  to  produce  food,  clothing  and  habitations  for  all 
the  people  to  fare  sumptuously;  all  we  lack  is  money,  plenty  and 
properly  distributed,  and  we  claim  that  our  Government  can  coin 
"stamp  and  declare  legal  tender,"  and  issue  sufficient  for  all 
exchange,  and  if  instituted -and  distributed  according  to  the  pro- 
visions contained  in  this  bill,  it  will  be  a  self-redeeming  and  a 
revenue-producing  currency,  and  always  worth  one  hundred 
cents  to  the  dollar  for  all  domestic  purposes.  It  will  be  self-re- 
deeming, because  the  borrower  is  compelled  to  carry  it  back  to 
redeem  his  property,  etc.  It  will  be  revenue-producing  because 
the  Government  receives  the  interest  for  all  outstanding  cur- 
rency. The  great  importance  of  money,  its  power  for  good  or 
evil,  its  governing  influence  in  all  enterprises,  in  all  departments 
of  business  or  productive  industry,  demands  that  its  supply  should 
be  controlled  with  judgment  and  responsibility,  and  issued,  dis- 
tributed and  redeemed  with  a  certainty  heretofore  unknown. 

A  principle  that  promises  as  much  good,  unmixed  with  evil, 
as  this  bill  does,  should  at  least  be  tried,  as  it  combines  every 
good  quality  existing  in  all  other  money  systems.  There  is 
nothing,  but  the  morals  of  man,  that  so  much  needs  improvement 
as  government  finance  and  currency. 

Man  has  enlarged  his  dominion  over  matter  by  various  dis- 
coveries and  improvements  the  past  half  century;  but  no  improve- 
ment has  been  made  in  government  finance  and  currency  the 
last  two  hundred  years,  without  the  mutilated  greenback  of 
America  could  be  called  an  improvement.  General  Grant  said 
the  greenback  as  a  national  money  "is  the  best  that  has  ever 
been  devised."  In  his  day  the  within  banking  bill  was  not  known. 


CHAPTER  XL 


"STANDARD  OF  VALUE"  AND  "MEASURE  OF 
VALUE"  DEFINED. 

What  confuses  the  common  people,  when  considering  the 
money  question,  is  the  confused  utterances  made  by  legislators, 
editors  and  others  in  their  speeches  and  writing  upon  the  subject. 
We  don't  like  to  say  this  is  purposely  done;  neither  do  we  charge 
it  to  ignorance;  but  the  following  utterances  certainly  confuse, 
if  they  don't  shroud  the  subject  in  mystery:  "It  won't  do  to 
have  more  than  one  standard  of  value,  and  that  should  be  gold." 
"WTe  must  have  a  double  standard  of  value,  using  both  silver 
and  gold,  as  gold  is  too  scarce  to  use  exclusively  as  a  standard." 
"We  must  use  paper  as  a  standard  to  supplement  gold  and  silver, 
as  the  latter  is  too  scarce  to  do  the  business  of  the  country." 
These  together  with  a  "gold  standard,"  a  "gold  and  silver  stand- 
ard," a  "double  standard,"  a  "single  standard,"  a  "measure  of 
value,"  a  "standard  of  value,"  and  similar  expressions  serve 
more  to  darken  than  to  enlighten  the  understanding. 

The  above  and  similar  expressions  as  used,  make  no  distinction 
between  a  standard  of  value  and  a  measure  of  value,  but  indicate 
that  if  gold  is  the  standard,  silver  and  paper  if  used  as  money  at 
all  must  also  be  standards.  Yet  the  difference  is  so  great  and 
the  subject  has  been  so  much  discussed,  one  is  surprised  that  all 
thinkers  should  not  be  able  to  distinguish  between  them.  The 
difference  is:  a  standard  of  value  must  have  inherently  a  fixed 
and  permanent  value;  whereas,  a  measure  of  value  is  fixed  by 
law.  "Congress  shall  have  power  to  coin  money,  regulate  the 
value  thereof."  They  have  power  to  make  two  cent,  five  cent 
or  ten  cent  letter  stamps,  or  $2,  $5,  $20  greenbacks,  upon  pieces 
of  paper  intrinsically  of  no  value;  or  they  can  say  that  so  many 
grains  of  gold  and  so  many  of  silver  shall  constitute  a  measure  of 
value,  according  to  a  gold  standard;  although  the  bullion  value 


54 

of  each  measure  may  be  much  less  than  its  face  value  fixed  by 
law. 

To  illustrate,  3  barley  corns  make  one  inch;  12  inches  I  foot, 
etc.:  We  see  by  this  that  barley  corns  are  the  standard  of  length, 
yet  no  one  would  think  of  using  barley  corns  for  measures  of 
length,  but  instead  they  use  rules,  yards,  rods,  chains,  etc.,  made 
of  tape,  wood,  iron,  steel,  etc.  Again,  24  grains  make  i  penny- 
weight; 20  pennyweights  I  ounce;  12  ounces  I  pound.  Here 
grains  are  again  used,  but  this  time  as  a  standard  of  weight.  But 
who  ever  saw  a  weight,  even  a  pennyweight,  made  of  grains? 
But,  instead,  weights  are  made  of  lead,  iron,  brass,  etc.,  into 
pennyweights,  ounces,  pounds,  etc.,  but  never  of  grains,  although 
grains  are  the  standard  of  weights. 

No  two  materials  that  differ  intrinsically  from  each  other  can 
be  taken  as  a  standard  without  confusion.  Gold  and  silver  can 
no  more  be  taken  jointly  as  a  standard  of  value  without  con- 
fusion than  barley  corn  and  Indian  corn,  can  both  be  declared 
standards  of  length.  But  gold  may  be  chosen  as  the  standard 
of  value  and  any  suitable  material  may  be  used  as  measures — 
gold,  silver,  copper,  paper  or  any  other  material  the  sovereign 
may  choose. 

In  further  reasoning  upon  the  money  standard  I  should  say, 
if  we  could  have  a  double  standard  of  value,  upon  the  same  prin- 
ciple we  could  have  a  treble  and  a  quadruple  standard,  at  least 
it  looks  so  to  me.  But  I  don't  believe  in  the  double  standard  of 
value  theory,  any  more  than  I  do  in  a  double  standard  of  length, 
or  a  double  standard  of  weights  and  measures.  The  above  bill 
demands  only  a  gold  standard  of  value  and  its  enactment  would 
fix  the  value  of  all  money  measures  to  that  of  the  standard, 
which  would  give  us  the  best  and  most  valuable  money  the  world 
has  ever  used,  made  of  gold,  silver  and  paper  and  all  a  full  legal 
tender. 

The  above  bill  provides  only  one  standard  of  value — gold, 
but  many  measures  made  of  several  different  kinds  of  material, 
and  for  all  purposes  of  trade  the  measures  equal  the  established 
standard,  their  value  being  fixed  by  law  to  that  of  the  standard. 
The  law  makers  select  the  standard,  but  its  value  is  inherent  and 
by  nature  comparatively  unchangeable;  but  the  value  of  the 
measures,  as  above  stated,  must  be  fixed  by  law,  and  intrinsically 
no  value  is  required. 


CHAPTER  XII. 

THE  TRADE  DOLLAR. 
A  Copy. 

It  has  always  been  a  puzzle  to  many  people  why  the  trade  dollar 
should  sell  at  a  discount,  containing  more  silver  than  the  ordinary 
dollar,  while  the  ordinary  dollar  commands  one  hundred  cents. 
An  Eastern  newspaper  contemporary,  putting  the  supposititious 
case  of  a  teacher  drilling  his  class  in  school,  gets  off  this  satire: 

"Teacher — Now,  boys,  what  is  this  I  have  in  my  hand?  All 
the  boys — It's  a  dollar.  Teacher — Yes ;  it's  a  legal  tender  dollar. 
It  is  called  the  dollar  of  the  fathers.  How  much  silver  does  it 
contain?  Small  boy — 412^  grains.  Teacher — That's  right. 
Now  what  do  you  call  this  ?  It's  also  a  silver  dollar ;  but  what  is 
it  called?  Small  boy — (after  examination);  It's  a  trade  dollar. 
Teacher — That's  right.  Now  how  much  silver  does  it  contain? 
Small  boy — 420  grains.  Teacher — how  much  is  it  worth?  No 
answer  from  the  boys.  Teacher — Well,  it's  worth  90  cents.  All 
the  boys — It  is  worth  90  cents.  Teacher — Now,  boys,  tell  me 
why  it  is  that  the  dollar  containing  412^  grains  of  silver  is  worth 
100  cents,  while  the  dollar  containing  420  is  worth  only  90  cents. 
None  of  the  boys  could  answer." 

The  Two  Dollars. 

The  fact  that  the  United  States  "standard  dollar,"  containing 
412^  grains  of  silver,  is  worth  more  than  the  trade  dollar  which 
contains  420  grains  of  silver,  appears  to  puzzle  all  minds  that 
fail  to  distinguish  between  bullion  and  money.  The  trade  dollar 
is  not  money,  but  it  is  coined  bullion,  a  commercial  commodity, 
to  be  bought  and  sold  like  other  commodities,  and  represents 
itself.  It  has  no  legal  value,  and  is  worth  about  420  grains  of 


56 

silver  bullion.  The  "standard  dollar"  was  made  a  legal  tender; 
a  representative  of  sovereign  power.  In  fact,  made  money — a 
tool  to  work  with. 

With  money  we  can  measure  and  float  values,  pay  debts,  tariffs 
and  taxes,  build  and  run  railroads,  telegraphs,  factories,  etc., 
open,  cultivate  and  improve  farms  and  mines,  develop  the  coun- 
try, transact  business  and  create  wealth.  Comparatively  all  things 
can  be  done  with  money;  without  it,  but  little;  all  of  the  above- 
mentioned  powers  were  given  to  the  standard  dollar  by  law,  not 
by  grains  of  silver.  The  "trade  dollar"  possesses  no  legal  powers 
and  only  grains  of  silver  gives  it  value. 

Yes,  the  Government  coined  both  dollars,  and  as  a  mechanical 
piece  of  work,  did  a  creditable  job.  But,  wanting  some  money  to 
assist  in  specie  resumption  and  to  satisfy  the  demands  of  the 
people,  Congress  made  the  standard  dollar  money  a  full  tender  in 
payment  of  debts  and  redemption  purposes,  and  by  that  Act  gave 
it  all  the  advantage  it  has  over  the  trade  dollar;  and  if  it  had  con- 
tained only  82^  grains  of  silver  with  all  of  the  above  sovereign 
or  legal  powers,  it  would  have  been  worth  100  cents  for  all  of 
the  above  mentioned  purposes.  As  legal  value  is  the  only  value 
required  for  national  money,  the  metal  upon  which  the  sovereign 
power  is  stamped  is  only  the  legalized  agent  of  the  sovereign  to 
express  the  power  of  money,  and  82^  grains  of  silver  would  be 
ample  for  that  purpose. 

And  (let  me  whisper  it)  if  the  United  States  standard  dollar 
was  relieved  of  four-fifths  of  its  objectionable  bulky  nature,  we 
would  think  the  coin  greatly  improved,  and  be  more  acceptable 
as  a  business  tool  than  the  present  standard  dollar;  as  the  same 
weight  of  metal  would  then  perform  five  times  as  much  labor  as 
it  does  now,  and  yet  circulate  more  readily  at  100  cents  to  the 
dollar,  if  coined  and  circulated  as  this  bill  provides. 


CHAPTER  XIII. 

OUR  VICIOUS   MONEY   SYSTEM. 
No  Change  in  Policy. 

The  two  dominant  political  parties  that  have  alternately  held 
power  for  a  number  of  years  past  have  followed  the  same  line 
on  the  money  question. 

War  has  been  declared  by  money  reformers  against  our  present 
money  systems.  The  hosts  are  being  marshaled  for  the  fray, 
excitement  and  determination  are  on  a  high  key,  and  the  demand 
for  a  change  urgent,  being  pressed  on  by  public  opinion  and 
by  the  loss  and  misery  now  being  suffered  by  our  people,  and 
by  the  financial  humiliation  of  our  Government,  brought  on  them 
by  our  vicious  money  systems. 

The  decree  has  gone  forth  the  old  currency  systems  must  and 
shall  be  abolished  and  a  better  system  substituted,  a  system  that 
will  supply  public  money,  ample  for  all  business  and  good  for 
all  time,  made  of  gold,  silver  and  paper,  every  dollar  of  it  worth 
as  much  as  every  other  dollar  and  always  obtainable  upon  good 
security.  The  same  to  be  a  full  legal  tender,  safe,  sound  and 
flexible,  issued,  owned  and  loaned,  by  the  people  through  their 
own  instrumentality. 

Loaned  to  the  Government,  to  the  States  and  to  individuals, 
at  an  interest  not  to  exceed  3$  per  annum.  Securities  to  be, 
Government  bonds,  State  bonds,  bullion  and  real  estate.  The 
borrower  or  his  property  must  redeem  all  the  money  he  borrows, 
the  same  as  the  banker  or  his  property  now  redeems  the  National 
Rank  note.  Such  is  the  desire  and  demand  (in  spirit  if  not  in 
word)  of  all  currency  reformers  to  replace  the  old  systems.  This 
new  system  may  look  difficult  at  first  sight,  but  if  understood  and 
administered  through  a  government  banking  department,  it 
would  be  plain,  practical  and  complete,  as  the  banks  would  all  be 


58 

saving  and  deposit  banks  as  well  as  banks  of  loaning.  Surely 
such  a  reform  is  a  worthy  object  to  contend  for  and  should  claim 
the  attention  and  assistance  of  the  American  people,  as,  after 
this  financial  machine  was  put  in  motion  it  would  belong  to 
them,  and  it  would  be  the  first  bank  ever  organized  in  America 
at  least,  wherein  all  the  people  would  be  stockholders,  and  from 
that  on,  the  people  would  be  the  money  power  and  their  Government 
be  no  more  humiliated  by  being  compelled  to  beg  money  from 
abroad  or  from  a  syndicate  of  bankers. 

The  people  and  their  Government  would  then  be  financially 
free,  to  enjoy  more  of  that  freedom  guaranteed  to  them  by  their 
Constitution.  They  would  have  a  fountain  of  currency  that  never 
dried  from  which  all  could  draw,  upon  the  same  conditions. 

The  thoughtful  may  perceive,  that  had  the  above  outlined 
money  system  been  working  the  past  eight  years,  both  the  people 
and  their  Government  would  have  escaped  the  financial  suffering 
that  was  forced  upon  them  during  the  time  by  our  vicious  money 
systems  which  are  deficient  in  amount  and  imperfect  in  distribu- 
tion. The  free  unlimited  coinage  of  silver  will  come  no  nearer 
preventing  money  flurries,  and  money  panics,  or  supplying  the 
system  of  money  above  demanded  than  did  the  free  coinage  of 
gold  or  the  issue  of  National  Bank  notes,  as  they  are  all  private 
money — Shylock  money — demanding,  not  interest  only,  but 
usury,  always  manipulated  by  the  money  power  for  selfish  ends, 
always  giving  trouble  and  subject  to  flurries  and  panics. 

Such  has  been  the  fruits  of  private  money  the  past  century, 
and  as  nothing  better  can  be  hoped  for  from  such  systems  in  the 
future,  a  change  is  demanded  to  a  system  of  public  money  as 
above  indicated,  then  money  will  be  always  in  reach  of  the  busi- 
ness community  at  an  equitable  rate  of  interest. 

An  important  question  is:  What  political  party  will  enact  the 
necessary  law  to  give  us  the  currency  above  demanded.  Surely, 
the  Democrats  will  not  do  it,  as  they  have  had  several  urgent 
opportunities  to.  have  enacted  such  a  law  the  past  century,  but 
they  did  not  do  it.  They  had  ample  power  and  could  have 
given  us  the  currency  demanded  in  1893  but  they  did  not  do  it. 
The  Democrats  charge  the  Republicans — and  justly  so — for  the 
liard  times  and  money  panic  brought  upon  the  country  by  des- 
troying the  greenbacks  and  other  treasury  notes  in  1871,  1872 


59 

and  1873.  Also  for  the  dull  times  aritt  failures  of  1889,  1890, 
1891  and  1892  brought  on  they  charge  by  a  "high  protective 
tariff."  The  Democrats  succeeded  in  making  the  people  believe 
this  imaginary  statement  at  the  1892  election,  the  consequence 
was  the  Democrats  were  hoisted  again  to  power,  since  then 
failures  multiplied  and  times  grew  rapidly  worse,  yet  nothing  was 
done  by  them  to  relieve  the  situation.  The  Republicans  are  no 
more  to  be  relied  upon  for  enacting  a  law  that  would  give  us  an 
ample,  safe,  sound  and  flexible  currency  than  the  Democrats, 
as  they  held  power  27  years  of  the  35  last  past  and  during  that 
time  there  has  been  two  conspicuous  money  panics  with  the  loss 
and  misery  they  produced,  the  two  lasting  at  least  a  decade  of 
that  time,  and  several  money  flurries  also,  yet  nothing  was  done 
by  the  Republicans  to  cure  or  prevent  these  afflictions.  They 
have  now  been  voted  again  into  power,  but  they  have  conspicu- 
lously  decided  to  keep  the  money  question  just  where  it  is,  and 
where  it  has  been  these  many  years,  viz:  have  only  private  money 
and  no  increase  in  amount.  Yes,  I  know  McKinley  proposes 
restoring  a  high  protective  tariff  as  a  panacea  for  our  present 
financial  affliction,  but  I  can't  believe  a  high  tariff  will  arrest 
our  present  money  panic  or  prevent  new  ones,  as  we  have  had 
in  the  past  money  panics  under  both  high  and  low  tariffs. 

The  panic  of  1873  occurred  under  the  Morrill  tariff  which 
averaged  48$.  The  panic  of  1893  occurred  under  the  McKinley 
tariff  wich  averaged  58^.  If  the  most  accute  period  of  our 
present  panic  occurred  under  that  tariff,  restoring  it  could  have 
but  little  effect  toward  arresting  that  same  panic. 

A  high  tariff  would  possibly  start  a  few  factories,  but  if  kept 
going,  a  few  thousand  laborers  only  could  be  employed,  which 
would  effect  but  little,  as  it  is  millions,  not  thousands  that  re- 
quire employment  before  prosperity  could  be  assured. 

Yes,  McKinley  is  intelligent,  honest,  and  well  meaning  and  has 
been  a  conspicuous  figure  in  partisan  politics  for  years,  yet 
with  all  history  before  him,  high  tariffs  are  the  only  thing  pro- 
posed by  him  to  cure  our  present  financial  affliction  and  prevent 
new  ones. 

We  had  money  panics  under  unlimited  coinage  of  gold  and 
silver,  panics  under  an  exclusive  gold  standard,  and  panics  under 
a  bimetallic  currency,  which  proves  that  it  is  the  working  of  our 
vile  system  of  private  money  that  is  at  fault,  not  "tariff,"  "tariff 


6o 

• 

agitation,"  or  the  material  upon  which  money  is  stamped.  And 
as  long  as  America  adheres  to  its  exclusive  use  of  private  money, 
just  so  long  will  it  be  afflicted  periodically  with  money  panics. 

The  Republicans  charge  our  present  financial  and  business 
depression  to  the  Democrats  on  account  of  their  "tariff  agitation." 
Yet  the  Republicans  enacted  all  the  laws  that  brought  it  on. 
Our  present  money  affliction — as  may  be  seen  further  along — 
commenced  and  run  through  the  whole  four  years  of  President 
Harrison's  administration  and  the  Democrats  inherited  it  from 
the  Republicans,  and  they  have  run  it  through  successfully  the 
whole  four  years  of  President  Cleveland's  last  term,  and  I  must 
confess,  they  return  it  to  the  Republicans  unimproved  by  their 
tariff  tinkering  and  relieving  the  Government  from  the  burden 
of  coining  fifty-four  million  dollars  silver  yearly  for  the  people 
besides  borrowing  one  hundred  and  sixty-two  million  dollars  to 
run  the  Government.  The  Republicans  may  yet  improve  it  by 
destroying  the  greenbacks  and  organizing  more  National  Banks 
to  further  rob  depositors. 

The  Democrats  formulated  the  American  money  policy  almost 
exclusively  from  the  formation  of  the  Government  to  1862,  and 
money  flurries  and  panics  followed  frequently  as  natural  con- 
sequences during  those  many  years.  The  Whigs  and  other  parties 
who  temporarily  held  power  during  those  years,  followed  the 
Democratic  money  policy  of  providing  only  private  money  for 
public  and  private  use. 

Since  1861  the  Republicans  have  enacted  our  currency  laws 
and  it  was  the  effect  of  those  laws  that  brought  on  the  1873  panic 
and  under  and  by  virtue  of  those  laws  we  are  now  suffering 
another  money  panic  which  began  to  be  seriously  felt  in  1889 
with  10,882  commercial  failures;  1890,  10,907;  1891,  12,273; 
1892,  12,000;  1893,  16,650;  1894,  15,560;  1895,  13,197;  1896, 
15,286.  A  formidable  list  of  failures  truly  for  the  eight  years, 
averaging  yearly  13,356  commercial  failures  during  the  eight 
years,  besides  the  hundreds  of  bank  failures,  closed  factories, 
thousands  driven  from  their  homes  by  foreclosures,  and  millions 
of  enforced  idle  workmen,  with  all  the  loss  and  misery  that  that 
implies.  46,362  of  the  above  failures  occurring  under  President 
Harrison's  administration  which  the  Republicans  claim  as 
"prosperous  years." 

If  a  law  had  been  enacted  during  the  early  symptoms  of  the 


6i 

then  approaching  panic  in  1888  or  1889  authorizing  the  making 
and  distributing  of  public  money  direct  to  the  people,  the  losses 
and  failures  during  the  past  eight  years  would  have  been  only 
normal,  and  instead  of  the  direct  loss  of  eight  billion  dollars 
by  idle  capital,  idle  labor,  idle  machinery  and  depreciation  of 
values  the  past  eight  years,  at  least  one  billion  of  new  wealth 
would  have  been  added  to  the  wealth  of  the  nation  each  year. 
So  instead  of  an  eight  billion  loss  we  would  have  gained  eight 
billion,  thus  increasing  the  nation's  wealth  many  billions  more 
than  can  be  found  in  the  nation  to-day.  This  seems  too  much 
of  a  loss  to  suffer  from  blind  and  selfish  leaders,  but  we  must 
not  expect  anything  better  from  those  who  trust  to  their  own 
wisdom  and  make  gold  their  God,  we  read,  "The  wisdom  of  your 
wise  men  shall  perish  and  the  understanding  of  the  prudent 
shall  be  hid."  This  prediction  seems  to  have  fallen  with  whither- 
ing  effect  upon  our  nation  when  viewing  the  effects  of  the  acts 
of  our  professional  statesmen  and  partisan  politicians.  No  one 
competent  to  mentally  digest  the  above  will  deny  its  truth. 

The  Democrats  and  Republicans  having  formulated  the  money 
policy  of  the  country  must  be  held  responsible  for  every  money 
panic  and  all  loss  and  misery  growing  out  of  them,  for  on  the 
money  question  they  are  one  and  no  improvement  of  their  pro- 
posing is  yet  in  sight. 

So  all  who  have  suffered  from  loss  of  property,  loss  of  business, 
or  from  enforced  idleness  on  account  of  our  vicious  money 
systems  who  again  votes  either  of  the  old  parties  into  power 
will  be  guilty  of  helping  to  pave  the  way  for  another  financial 
affliction  a  few  years  hence  similar  to  the  one  we  are  now  passing 
through.  For  such  is  the  legitimate  fruit  of  their  money  policy 
as  history  fully  attest.  No  money  reform  should  be  looked  for 
worth  naming  from  either  of  the  old  partisan  political  parties, 
they  are  wed  to  their  old  party  doctrines. 

The  Populist  seem  the  only  party  almost  ready  to  take  hold 
of  this  matter,  as  they  have  declared  for  public  money  since  their 
first  organization,  but  before  they  can  consistently  work  for 
public  money  alone,  their  platform  should  be  turned  and  all 
demands  for  more  private  money  eliminated,  as  it  seems  unwise, 
and  confusing,  to  demand  both  public  and  private  money  in 
the  same  platform.  It  is  like  the  fig  tree  producing  both  figs 


62 

and  thistles  or  the  fountain  sending  forth  sweet  water  and 
bitter. 

The  people  have  had  thistles  and  bitter  water  enough  from  our 
present  private  money  systems  and  no  more  bitter  fruits  should 
be  offered  them,  figs  and  sweet  water  in  the  shape  of  public 
money  only  should  be  given.  Such  as  the  above  bill  calls  for, 
as  that  would  be  the  only  effective  medicine  that  would  cure  all 
the  financial  evils  we  now  suffer. 

I  believe  with  this  plain  constitutional  demand  the  party  ad- 
vocating it  would  certainly  succeed  in  its  establishment. 

The  free  coinage  of  silver  having  been  rejected  by  a  fair  vote 
of  the  American  people  should  never  again  be  urged,  as  a  much 
better  way  is  now  known. 


CHAPTER  XIV. 


MONEY— ITS  PROPER  DISTRIBUTION. 

The  proper  distribution  of  money  is  an  important  part  of  the 
financial  machinery  necessary  for  supplying  the  people  with  an 
adequate  currency,  without  the  proper  machinery  no  people  can 
be  justly  supplied  with  money.  An  adequate  supply  of  money  is 
one  thing,  and  supplying  business  with  money  another. 

Money  like  water  and  manure  become  useful  by  being  dis- 
tributed. There  may  be  an  ample  supply  of  money  in  the  country 
at  the  present  time  to  fill  every  legitimate  demand  if  it  could 
be  circulated,  but  all  our  money  being  private  money,  it  cannot 
be  circulated  when  its  owner  refuses,  or  when  he  demands  a 
greater  interest  than  the  industries  can  afford  to  pay,  in  this 
case  his  selfishness  prevent  money  from  circulating.  But  man's 
timidity  is  the  greater  hindrance  to  money  circulation,  as  it  causes 
it  to  be  hid  up  in  napkins  or  locked  in  bank  vaults,  whose  officers 
cannot  or  as  they  say  "dare  not  lend  it  until  they  know  the  end 
of  our  present  trouble."  Meanwhile  the  business  of  the  whole 
country  suffers  for  want  of  the  money  that  cannot  be  circulated. 
We  attribute  no  wrong  to  private  money  owners  for  refusing  to 
loan  when  they  think  their  interest  is  best  served  by  so  doing. 
The  fault  lays  with  Congress  in  not  creating  public  money  and  a 
system  of  supply  and  distribution  for  the  use  of  the  people,  when 
private  money  owners  and  bankers  refuse,  and  thus  keep  business 
alive  and  save  the  country  from  wreck  and  ruin. 

For  want  of  public  money  and  a  national  system  for  its  dis- 
tribution, many  of  our  citizens  now  pay  and  for  a  long  time  past 
have  paid  15^  per  annum  for  the  use  of  money,  while  some 
sections  of  our  country  pay  less  than  one-third  of  that  sum,  and 
the  National  Bank  owners  get  from  the  Government  all  the 
currency  they  can  secure  for  i^,  thus  inflicting  a  manifest  in- 
justice upon  the  people  of  a  large  part  of  our  country  by  making 


64 

them  pay  5  times  as  much  for  the  use  of  money  as  it  is  worth 
invested  in  the  industries,  while  others  get  all  they  want  for  \<f>. 

The  importance  of  a  just  and  adequate  distribution  of  money 
has  never  been  fully  considered  by  our  law  makers,  they  have 
acted  less  wisely  than  organizations  of  less  power. 

Witness  our  municipal  officers  to  whom  is  assigned  the  duty 
of  supplying  the  citizens  with  water — they  do  not  consider  their 
duty  performed  when  they  have  built  the  reservoirs  and  filled 
them  with  an  ample  supply  of  water  for  every  citizen,  but  when 
they  have  laid  their  mains  from  the  reservoirs  and  distributing 
pipes  to  every  house,  garden  and  park  and  rilled  them  with  a 
lasting,  healthy  supply,  then,  only  is  their  duty  performed. 

The  inhabitants  of  a  city  would  be  as  well  supplied  with  water 
in  the  reservoirs  only,  without  the  distributing  pipes  as  the  people 
of  the  United  States  have  been  supplied  with  money.  There 
may  have  been  an  ample  supply  in  the  reservoirs  (banks),  but 
outside  a  few  private  money  springs  only,  the  people  were 
allowed  to  drink,  and  the  money  from  those  were  so  unreliable 
and  limited  that  money  panics  business  depression,  suffering, 
misery  and  death  were  the  fruit  thereof;  and  all  because  we  have 
no  law  authorizing  a  full  supply  of  public  money  and  its  just 
distribution. 

Again  the  Architect  of  the  universe  when  He  organized  this 
earth  and  placed  more  than  a  supply  of  water  upon  it  to  sustain 
all  animals  and  vegetation  that  could  be  brought  upon  its  face, 
knew  that  without  subjecting  the  water  to  his  law  of  distribution 
the  earth  would  be  a  barren  waste,  and  his  work  was  not  pro- 
nounced good  until  He  spake  and  "a  mist  went  up  from  the 
earth  and  watered  the  whole  face  of  the  ground,"  and  because  of 
that  law  of  distribution  the  earth  still  remains  fruitful. 

For  want  of  a  law  creating  an  ample  supply  of  public  money, 
and  a  just  and  sure  way  of  distribution,  the  people  of  these 
States  have  suffered  in  times  of  panic,  mentally,  physically  and 
financially  beyond  computing.  This  periodical  loss  and  suffer- 
ing, has  afflicted  our  people  the  past  hundred  years,  and  no 
relief  yet  in  sight,  save  the  inauguration  of  public  money  as 
demanded  in  these  pages.  No  private  money  system  can  ever 
prevent  the  affliction,  if  it  could,  the  past  hundred  years  was 
ample  time  for  it  to  act,  as  private  money  was  our  only  money 
during  that  time. 


6S 

A  large  supply  of  money  without  a  definite  system  of  circula- 
tion, may  be  of  no  more  value  to  the  people  than  water  in  distant 
reservoir  would  be  to  citizens  of  a  town  without  distributing 
pipes,  or  water  in  ponds,  lakes  and  oceans  would  be  in  keeping 
the  earth  fruitful  without  the  provision  of  nature  for  its  dis- 
tribution. 

In  1865  we  nad  in  our  money  reservoirs  $2,111,678,684,  which 
may  have  been  ample  to  satisfy  every  demand,  could  it  have 
been  circulated.  But  alas!  it  being  private  money  there  was  no 
power  then  known,  equal  to  the  task  of  circulating  it,  and  it 
continued  hoarded  in  the  banks  of  the  great  cities  until  the 
Government  redeemed  and  destroyed  near  one  and  one-quarter 
billion  dollars  of  it,  at  a  time  when  the  business  of  one-half  of 
the  country  was  clamoring  for  money  and  paying  15^  per  an- 
num for  its  use  when  it  could  get  it. 

Had  Congress  coverted  this  vast  sum  into  public  money — that 
is  money  owned  by  the  public — instead  of  destroying  it,  em- 
powered the  Government  to  send  it  South  and  West  and  loaned 
it  to  the  people  for  3$  per  annum  and  continued  to  do  so  to  the 
present  time,  the  country  would  have  been  $30,000,000,000  more 
wealthy  than  it  now  is,  as  it  would  have  escaped  the  1873  panic 
with  all  its  loss  and  misery,  and  also  the  1893  panic  with  all  its 
loss  and  "hard  times,"  with  which  the  people  have  been  afflicted 
the  past  eight  years.  Some  statistics  places  our  loss  the  past 
eight  years  from  depreciation  of  property  alone  at  $16,000,000,000 
and  the  loss  from  the  same  cause  during  the  seventies  no  doubt 
approximated  that  sum. 

Depreciation  in  the  value  of  property  is  not  the  only  loss 
arising  from  a  money  panic,  idle  labor,  idle  capital — ships,  rail- 
roads, factories,  money,  etc. — foot  up  a  large  sum. 

The  estimated  loss  from  this  enforced  idleness  during  the  six 
years,  the  cause  rested  upon  the  country  in  the  seventies  was 
estimated  five  million  dollars  per  day,  and  no  doubt  the  same 
figures  would  be  a  conservative  estimate  for  the  past  eight  years. 
Thus  14  years  of  this  idleness  adds  over  $25,000,000,000  more 
loss  to  the  depreciation  losses  suffered  by  the  people  from  the 
consequences  arising  from  those  two  money  panics,  all  this 
come  upon  the  people,  because  Congress  destroyed  the  money — 
(the  life  of  business)  when  it  should  have  distributed  it  by  loan- 
ing. 


66 

Had  this  money  been  loaned  by  the  Government  for  3$,  instead 
of  destroying  it,  the  Government  could  have  paid  on  its  obliga- 
tions all  it  has  paid,  made  all  national  improvements,  it  has  made 
and  accumulated  $780,000,000  (less  expense)  which  it  would 
have  received  from  its  loaned  currency. 

This  is  not  all,  the  people  must  be  again  considered.  Had 
the  Government  loaned  this  money  to  every  citizen  for  y/c  at 
that  time,  the  same  as  it  was  then  loaning  to  National  Bank 
owners  for  i$,  it  would  have  reduced  interest  from  an  average 
of  7$  to  about  3-!$  throughout  the  whole  country,  and  thus  re- 
lieved the  business  of  the  country  of  one-half  of  its  interest 
burden  approximating  $21,000,000  annually,  or  for  the  26  years 
$546,000,000.  It  is  suggested  this  latter  estimate  is  too  low. 
Which  may  be  true,  but  as  the  estimated  losses  only  approxi- 
mates to  show  what  great  losses  the  people  and  the  Government 
have  sustained  the  past  26  years  because  Congress  failed  to  per- 
form its  constitutional  money  duty.  However,  as  these  losses 
have  now  been  indured  it  will  not  become  the  American  people 
to  "Grieve  after  spilled  milk,"  but  it  will  much  become  them 
to  provide  against  all  such  future  losses.  To  point  the  way 
is  the  burden  of  these  pages  by  demanding  of  Congress  the 
enactment  of  the  foregoing  bill,  which  would  produce  all  the 
money  business  requires,  and  distribute  it  through  a  Government 
banking  department  by  loaning  to  every  citizen  for  3^  per  an- 
num who  demands  it  and  furnishes  the  required  security,  in 
large  or  small  sums,  $50  to  a  poor  man,  will  not  be  considered 
too  small  to  require  the  attention  of  the  department  officials 
or  a  half  million  too  much  to  the  rich,  to  corporations  and  to 
States.  Under  that  bill  money  would  be  distributed  to  the  people 
with  as  much  certainty  as  the  Government  now  distributes  cur- 
rency to  owners  of  National  Banks. 

Now,  although  the  American  Government  is  one  of  the 
largest  banking  institutions  known,  supplies  more  capital  and 
lends  larger  sums  of  money  than  any  other,  yet  no  producer 
of  wealth  whatever  his  need  or  security,  can  borrow  money  of 
the  Government.  Producers  must  borrow  from  those  to  whom 
the  Government  lends  or  elsewhere. 

Such  favoritism  and  injustice  would  be  changed  under  the 
bill  above  referred  to,  as  it  would  meet  out  financial  justice  to 
every  citizen  without  regard  to  color,  creed  or  business,  whether 
banker,  merchant,  farmer,  manufacturer,  miner  or  speculator,  all 


67 

will  stand  equal  before  that  law.  A  currency  instituted  and  dis- 
tributed as  this  theory  provides  would  spread  over  and  bless  a 
country  measurably  like  the  beautiful  regulation  of  Nature  in 
its  distribution  of  moisture. 

The  atmosphere  taking  it  up  from  the  great  reservoirs — the 
lakes,  and  oceans,  and  transporting  it  inland  and  distributing 
it  upon  mountain  and  plain  for  the  benefit  of  man  and  beast, 
creating  wealth,  beauty  and  life,  feeding  the  fountain,  swelling 
the  rivers  and  lakes  on  its  way  back  to  the  reservoirs,  where  it 
is  again  taken  up  and  distributed,  and  so  on  while  the  earth 
shall  last.  Even  so  this  currency  would  be  spread  over  the 
country  by  the  distributing  agents,  to  bless  all  avenues  of  trade 
and  industry,  and  then  flow  back  through  the  arteries  of  trade 
to  the  great  banking  department,  from  there  the  agents  of  the 
law  again  distributes  it  over  the  country,  there  to  assist  in  pro- 
ducing and  exchanging  wealth  and  comforts  for  the  use  of  man, 
which  flow  down  through  the  channels  of  transportation,  trade 
and  commerce,  contributing  to  the  building  up  of  cities  as  well 
as  the  country,  filling  the  ships  that  spread  unnumbered  com- 
forts over  the  world  for  the  happiness  of  man.  To  do  this 
money  must  be  distributed,  as  it  is  the  life  blood  of  production  and 
business  under  our  civilation. 

It  is  too  late  to  urge  constitutional  or  other  objections  against 
the  establishing  of  a  banking  department  of  our  Government 
after  having  loaned  its  cash  and  credits  to  large  corporations 
(railroads,  etc.)  and  loaned  hundreds  of  millions  of  currency  to 
the  National  Banks,  issued  and  redeemed  large  amounts  of  its 
own  notes  (greenbacks,  etc.).  Besides  receiving  money  on  deposit 
and  issuing  certificates  for  the  same,  and  doing  other  banking 
business,  all  of  which  should  be  done  and  more  too,  by  an 
organized  banking  department  always  open  for  business  and,  at 
whose  counter  no  citizen  that  applied  for  a  loan  should  be  re- 
fused if  he  offered  the  legal  security.  An  equitable  interest,  about 
3#  per  annum  only,  should  be  required  for  its  use.  All  offerings 
of  the  banks'  money  as  deposits,  should  be  received  and  a  certi- 
ficate given  for  the  same,  payable  on  demand  with  an  interest 
of  2.\$  per  annum. 

This  would  insure  a  more  just  distribution  of  money  under 
public  administration,  than  can  be  found  anywhere  on  the  earth, 
and  the  profits  would  belong  to  all  the  people. 


CHAPTER  XV. 


FINANCE  AND  CURRENCY. 

The  powers  granted  to  Congress  by  the  Constitution,  none  we 
believe  are  neglected,  slighted  or  farmed  out,  save  the  right  and 
duty  of  supplying  our  industries  with  money.  This  duty  Con- 
gress has  seen  proper  to  hand  over — not  to  the  States  from  whom 
it  received  it,  but  to  individuals  and  private  corporations — profits 
as  well  as  the  business  all  given  away.  Even  the  currency  issue, 
although  the  duty  of  Congress  and  ordinarily  very  profitable 
has  been  farmed  out  to  corporations  and  the  Government  in- 
directly pays  interest  on  all  issues  of  currency  thus  farmed  out, 
although  loaning  the  currency  to  the  banks.  This  may  be  an 
exceptional  instance  where  a  lender  of  money  paid  interest  on 
his  loans,  instead  of  receiving  it.  Prudent  business  men  don't 
pay  interest  on  the  money  they  loan.  Unfortunately  our  Govern- 
ment does,  as  the  currency  it  loans  to  the  National  Banks  for 
1%  is  secured  by  bonds  upon  which  the  Government  originally 
paid  6$.  Congress  by  its  act  said  to  the  bankers,  "you  buy  my 
bonds,  I  will  pay  you  6^  interest  per  annum  and  loan  you  90$ 
of  the  money  to  buy  them  with  and  only  charge  i$  for  what 
you  borrow.  You  will  only  have  to  furnish  10$  of  your  own 
money  to  buy  my  bonds,  so  you  will  get  60$  on  the  money  you 
furnish,  and  pay  me  i$  only  for  what  I  loan  you — see."  The 
banker  by  his  action  says,  "of  course  I  see!"  Such  statesman- 
ship and  financiering  on  the  part  of  Congress  is  not  to  be  com- 
mended. The  bill  herein  advocated,  if  enacted,  would  inforce 
a  wiser  course.  It  creates  a  public  money  owned  and  loaned  by 
the  people  to  the  Government,  to  the  States  and  to  every  citizen 
who  furnish  the  required  security,  all  to  be  administered  by  the 
people's  banking  department. 


CHAPTER  XVI. 


HOW  MUCH  CURRENCY? 

How  much  currency  should  a  people  have?  Answer,  enough 
for  legitimate  exchange.  What  is  the  natural  law  of  money 
supply?  Answer,  demand  for  use.  What  should  govern  the 
money  supply?  Answer,  the  natural  law.  The  above  are  all 
pertinent  questions  and  answers.  . 

Congress  has  always  acted  as  though  it  was  both  the  natural 
and  constitutional  law,  upon  the  subject,  but  as  natural  laws 
never  change,  and  Congress  having  changed  the  relative  amount 
of  money  so  frequently  and  thereby  created  panic,  misery  and 
confusion,  we  think  it  mistaken  when  it  assumes  the  whole  right 
to  regulate  the  amount  of  money  the  people  should  use,  by  so 
doing  it  has  usurped  a  function  of  the  natural  law.  In  1865 
Congress  provided  a  trifle  more  than  $58  per  capita  for  the 
use  of  the  people,  about  this  time  Congress  believed  the  people 
had  too  much  money  and  began  to  contract  it,  and  continued 
decreasing  its  volume  either  by  direct  or  indirect  means  until 
1877  when  $13  per  capita  alone  remained  to  the  people,  and  that 
was  all  private  money  and  could  only  be*circulated  as  its  owner 
willed.  The  result  was  the  1873  panic  running  through  a  num- 
ber of  years  with  its  usual  effect  of  loss  and  misery.  During 
those  years  the  people  demanded  and  implored  for  more  money 
to  effect  their  exchanges,  offering  in  some  cases  4$  per  month 
interest  and  good  security,  without  avail,  the  natural  law  of 
money  supply  had  been  disregarded  by  the  nation's  servants, 
and  the  punishment  followed  as  a  natural  consequence. 

Mr.  Sears  says,  "Demand  for  use  is  the  Natural  Law  of 
volume.  Therefore  arbitrary  limitation  of  the  volume  of  money 
is  a  violation  of  the  natural  law  and  is  void  of  right,  as  would  be 
a  like  limitation  of  production  and  exchange." 

Inasmuch  then  as  money  was  created  to  assist  production  and 
exchange,  one  should  no  more  be  limited  than  the  others,  all  are 


70 

under  the  same  natural  law.  Limiting  the  volume  of  money 
limits  production  and  exchange  as  effectually  as  though  the 
statute  had  been  aimed  at  production.  "Demand  for  use," 
should  be  the  only  limit  of  money  supply  and  strictly  followed. 

All  nations  that  disregard  the  natural  law  of  money  supply, 
by  fixing  an  arbitrary  limit  as  "$15  per  capita,"  or  "$800,000,000," 
etc.,  for  a  whole  people,  have  been  and  will  be  punished.  If  a 
minimum  amount  of  currency  is  only  authorized  being  sufficient 
only  for  the  dull  parts  of  the  year,  business  must  necessarily 
suffer  for  a  medium  during  flush  times  when  a  maximum  amount 
is  required,  or  if  fixed  amounts  should  prove  sufficient  for  this 
year,  it  may  be  too  small  for  next,  when  much  of  it  is  unavailable 
by  reason  of  loss  or  by  hoarding,  by  increased  production  and 
other  causes  making  greater  demand  for  money  with  less  for 
use  than  existed  last  year.  So  making  it  more  difficult  and  ex- 
pensive to  do  business  as  time  rolls  on,  until  a  money  panic 
with  all  its  horrors  is  forced  upon  the  people.  Such  being  the 
effect  of  trying  to  regulate  the  supply  of  money  by  ignoring 
the  natural  law. 

A  public  money  owned  and  loaned  by  the  people  and  admin- 
istered through  a  banking  department  will  steer  the  nation  clear 
of  money  panics,  by  loaning  money  on  demand  and  always  when 
legally  demanded. 

To  impower  the  Government  to  make  a  money  for  the  use 
of  the  industries,  in  amounts  so  limited,  and  distribution  so  im- 
perfect that  no  aid  can  be  given  to  either  Government  or  people 
in  times  of  great  needA  seems  unwise,  unstatesmanlike,  and  should 
be  remedied  by  the  organization  of  the  Government  banking 
department  above  referred  to. 

Congress  is  as  much  bound  to  make  money  enough  for  legiti- 
mate use  and  furnish  it  by  loaning  to  those  who  demand  it,  as 
it  is  to  provide  postal  facilities  sufficient  to  accommodate  all 
correspondence,  or  as  it  is  to  perform  any  other  constitutional 
duty.  In  fact  all  other  constitutional  duties  seems  well  per- 
formed by  Congress  except  money  supply  and  its  distribution, 
this  Congress  has  seen  proper  to  farm  out  to  corporations,  par- 
ticularly the  distribution  of  money  and  the  issue  of  Notes.  Thus 
shirking  its  own  duty,  ignoring  the  natural  law  and  placing  pro- 
duction and  the  whole  business  of  the  country  to  be  fostered 
or  depressed  by  the  whims  of  selfish  man,  our  present  money 
panic  and  all  former  ones  has  been  the  result.  All  of  this  loss 


and  suffering  will  hereafter  .be  avoided  if  the  people  will  enforce 
the  enactment  of  the  above  bill  and  thus  repossess  themselves 
of  the  plenary  power  over  the  supply  and  distribution  of  money. 
,  Then  money  (a  creation  of  law)  will  command  an  average  in- 
terest of. 3$,  which  approximates  an  equitable  one.  If  the  people 
could  obtain  money  at  the  same  rate  per  cent,  as  the  industries 
yield  net,  no  complaint  would  be  heard. 

A  citizen  borrowing  the  one-third  value  of  his  estate  at  12$ 
interest,  and  his  property  netting  only  3^  thus  pays  for  the  use 
of  money  the  whole  net  income  of  his  property  leaving  nothing 
for  his  own  investment.  Such  is  the  condition  of  thousands 
of  American  homes. 

The  farmers  of  a  certain  part  of  the  Pacific  Coast,  are  said 
to  have  borrowed  eight  million  dollars  at  an  interest  of  12^  per 
annum.  They  must  pay  or  have  bound  themselves  to  pay  an 
interest  equaling  the  whole  net  income  of  the  entire  mortgaged 
property.  If  they  do  not  receive  timely  aid,  that  is,  money  at  a 
more  just  rate  of  interest,  most  of  the  farms  must  pass  into 
the  hands  of  the  money  lenders  and  they  compelled  to  seek  other 
homes,  or  become  tenants,  day  laborers  or  tramps.  Here  would 
come  in  one  of  the  most  inestimable  blessings  to  American 
citizens.  If  the  people  created,  owned  and  loaned  public  money 
in  pursuance  of  the  natural  law.  Then  citizens  situated  as  the 
above  could  borrow  money  at  3^  and  retain  their  homes  and 
respectability  with  whatever  that  implies. 

The  evils  arising  from  a  currency  limited  by  law,  is  intensively 
aggravated  and  continually  decreased  by  hoarding  in  Government 
vaults,  state,  county  and  municipal  treasuries,  bank  reserves, 
misers,  safes  and  many  other  receptacles,  which  always  hold  a 
part  of  this  too  limited  currency  and  renders  this  limited  cur- 
rency still  more  limited  as  what  is  thus  permanently  held  is  not 
in  circulation. 

When  a  currency  limited  to  $58.41  per  head  as  in  1864  with 
the  people  enjoying  reasonable  prosperity.  Then  to  have  it 
taken  from  them  by  legal  contraction,  until  it  was  reduced  to 
$13  per  capita  as  in  1877,  with  the  hoarding  contraction  as  above 
stated,  thus  leaving  but  a  small  amount  of  business  life-blood  in 
circulation  among  the  people,  seems  not  only  unwise  and  un- 
statesmanlike  but  absolutely  cruel.  Can  it  be  wondered  at  that 
business  failures  increased  from  $8,566,000  in  1864  to  $300,000,- 


72 

ooo  in  1876,  or  that  the  business  of  the  country  collapsed  in 
1873  into  the  worst  money  panic  America  ever  suffered  up  to 
that  time.  So  the  only  safe  course  is  to  let  demand  for  use  decide 
the  amount  of  currency  required  for  business  purposes.  The 
above  banking  bill  provides  for  money  to  be  circulated  in  pur- 
suance of  the  natural  law.  Then  if  hundreds  of  millions  of 
dollars  were  hoarded  in  Government  vaults,  State  treasuries, 
banks,  etc.,  no  evil  effects  could  flow  from  it,  as  there  would 
be  money  enough  for  all  to  borrow  and  borrowers  enough  for 
all  to  lend. 


CHAPTER  XVII. 


THE  ABOLITION   OF   POVERTY. 

The  heading  of  this  article  has  been  the  text  of  many  a  sermon 
and  written  by  men  of  deep  thought,  and  benevolent  natures. 
It  is  not  probable  even  if  it  is  possible  that  poverty  will  be  abolish- 
ed without  very  great  improvement  in  mankind.  But  while 
perfection  may  not  be  attained,  every  advancement  towards  it 
should  be  encouraged,  and  if,  by  any  means,  one  of  the  leading 
causes  of  the  evil  can  be  reached  and  shorn  of  a  majority  of  its 
powers,  such  means  should  be  made  use  of,  and  such  shearing 
should  be  a  jubilee. 

The  improvident,  the  intemperate,  and  the  lazy  alone  will  be 
^ufficient  while  they  exist,  to  prevent  the  fruition  of  the  hope 
implied  by  the  text.  However,  the  classes  above  named  form  but 
a  very  small  percentage  of  those  who  are  oppressed  in  a  greater 
or  less  degree  by  poverty.  It  may  be  fairly  claimed  that  every 
producer  who  is  compelled  to  pay  from  his  product  an  interest 
greater  than  the  return  from  his  labor  and  the  money  borrowed 
is,  so  oppressed,  that  it  is  merely  a  question  of  time  when  he 
shall  be  despoiled  of  his  property.  If  the  combined  industries 
of  the  United  States  earn  3$  a  year,  and  pay  for  money  6^  a 
year,  the  intelligent  American  can  reckon  with  certainty  the  date 
of  absorption.  This  is  the  leading  cause  of  bankruptcy  and 
poverty  among  the  producers.  A  class  by  itself  has  grown  into 
such  power  that  they  are  able  to  control  Legislation  so  as  to 
prevent  the  producer  from  getting  the  full  value  of  their  products. 
The  tool,  money  which  was  and  should  still  be,  a  measure  and 
means  of  exchanging  values,  a  mere  servant  for  the  purpose, 
has,  under  the  manipulation  of  this  class,  become  the  object  of 
exchange,  no  longer  the  servant  but  the  master,  the  producer 
must  pay  his  tribute  to  the  class  or  they  will  push  him  to  the 
wall. 

The  first  great  step  towards  the  abolition  of  poverty  is  for  the 


74 

Government  to  furnish  to  producers  of  all  kinds,  a  cheap  and 
stable  money  which  all  may  freely  get  on  presentation  of  as  good 
.security  to  the  Government  as  would  be  required  by  the  money 
changers,  when  this  is  done  much  of  the  interest  burden  now 
weighing  them  down  will  be  lifted  and  no  bankrupt  court  or 
foreclosure  would  ever  be  required  as  long  as  the  interest  (now 
reduced  to  under  this  bill  to  3$)  is  paid  when  due. 

It  is  the  high  rate  of  interest,  not  the  money  loaned,  that 
causes  the  sacrifice  of  mortgaged  property,  hence  many  now 
driven  from  their  homes  by  a  10$  or  15$  interest  would  no  doubt 
be  able  to  pay  3$  and  save  their  homes,  and  thus  this  much 
poverty  would  be  abolished. 


CHAPTER  XVIII. 

A  CRITICISM  ON  SIMON  NEWCOMB'S  "A.  B.  C.  OF 

FINANCE." 

All  must  agree  that  have  read  the  book  that  it  is  truly  what 
it  professes  to  be,  viz:  the  "A.  B.  C.  of  Finance."  As  its  argu- 
ments, its  councils,  its  declarations  of  supposed  facts  and  its 
repudiation  of  the  powers  of  Government  and  civilized  law  would 
have  been  true  and  practicably  applicable  in  the  feudal  ages,  when 
our  fathers  had  little  or  no  internal  commerce,  and  they  trans- 
acted what  little  business  they  had  both  among  themselves  and 
with  neighboring  tribes  by  barter  and  gold  and  silver  as  bullion 
(not  money)  were  used  to  settle  balances  between  tribes  as  they 
are  now  between  nations.  It  was  the  "A.  B.  C.  of  Finance" 
which  Mr.  Newcomb  appears  never  to  have  got  beyond. 

I  quote  from  pages  36  and  37  of  his  work,  "To  proceed  further 
with  the  questions  (capital  and  labor)  we  must  first  know  some- 
thing of  the  nature  and  functions  of  money.  Here  we  come  into 
a  field  where  it  is  almost  as  necessary  to  unlearn  as  it  is  to  learn. 
There  are  two  entirely  groundless  ideas  prevalent 
respecting  the  value  of  money  The  first  idea  to 

which  I  allude,  is,  that  if  anything  is  called  a  dollar  by  Act  of 
Congress  *  it  must  therefore  have  a  definite  and 

fixed  value.  *  The  second  notion  to  be  unlearned  is, 

intimately  associated  with  the  former  one.  It  is  that  Govern- 
ments possess  some  wonderful  power  of  giving  value  to  money 
which  every  one  must  admit,  but  no  one  can  explain." 

Mr.  Newcomb  seems  to  infer  that  the  world  is  now  believ- 
ing what  he  says  they  must  "unlearn"  before  any  "progress  is 
possible." 

We  take  issue  with  Mr.  Newcomb  on  this  question.  We 
believe  they  should  learn  the  power  of  civilized  law  as  applied 
to  money  and  many  other  things,  they  should  lay  aside  their 


76 

traditional  ideas,  that  they  have  been  schooled  in  since  the  feudal 
ages,  and  thus  pass  on  from  their  A.  B.  C.  of  money  to  a  more 
perfect  understanding  of  "what  is  money?"  and  the  power  of 
civilized  law. 

After  passing  their  A.  B.  C.,  their  next  lesson  on  money  will 
be  to  learn,  that  money  is  not  gold  or  silver,  but  that  it  is 
sovereign  power  and  that  its  value  is  fixed  by  sovereign  law  not  by 
worth  of  material,  sovereign  law  fixes  the  value  of  letter  and 
revenue  stamps,  but  95  cents  worth  of  gold,  50  cents  worth  of 
silver  coined,  and  paper  made  into  a  dollar  greenback  their 
values  are  all  fixed  by  law  to  100  cents  to  the  dollar  as  indicated 
by  their  face  value.  And  it  is  known  they  all  readily  pass  from 
hand  to  hand  at  their  face  value  as  measures  of  value  according 
to  a  gold  coin  standard.  GovernmeVit  bonds  are  made  in  pur- 
suance of  sovereign  law  and  they  are  readily  bought  by  in- 
vestors at  their  face  value  in  gold  coin,  and  it  will  take  only  trie 
same  number  of  cheap  money  dollars  to  buy  one,  as  it  will  gold 
dollars.  Governments  can  pay  salaries  and  debts  with  this 
money  or  purchase  needed  supplies.  After  the  above  showing, 
it  must  be  confessed  that  when  one  writes  "that  no  Government 
can  create  money  value  out  of  anything  which  it  may  chose  to 
call  money"  such  is  yet  truly  in  his  "A.  B.  C.  of  Finance"  as  it 
appears  from  the  above  that  civilized  law — sovereign  power — can 
add  5  cents  to  the  gold  dollar,  50  cents  to  the  silver  dollar,  and 
100  cents  money  value  to  the  greenback,  it  certainly  has  power 
to  make  money  out  of  any  material  it  may  chose.  The  power  of 
cheap  money  has  astonished  man  and  created  wonder  in  his 
breast.  The  old  continental  currency,  faulty  as  it  was,  conquered 
England.  England's  issue  of  irredeemable  currency  conquered 
Napoleon.  The  issue  of  greenbacks  conquered  the  Southern 
Confederacy  and  a  like  issue  of  "cheap  money"  by  France  freed 
her  from  the  grasp  of  a  German  conqueror.  These  issues  of 
cheap  money  by  the  powers  named  above,  enabled  them  to  raise, 
equip  and  pay  armies,  purchase,  build  and  equip  war  vessels, 
and  purchase  all  necessaries  for  prosecuting  exhaustive  wars 
and  enabled  their  people  to  work  with  energy  their  farms,  fac- 
tories and  mines,  create  wealth  and  enjoy  prosperity  as  never 
before.  Thus  by  creating  this  "cheap  money"  this  money  tool, 
this  valuable  product,  by  sovereign  law,  all  of  these  great 
achievements  were  performed,  yet  Mr.  Newcomb  insists  that 


77 

"no  value  can  be  created  by  law."  All  issues  of  cheap  money 
have  always  been  and  always  must  be  failure."  What  will  Mr. 
Newcomb  say  to  the  following?  The  first  $60,000,000  of  "cheap 
money"  issued  after  the  commencement  of  the  civil  war  as 
authorized  by  the  enactments  of  July  17,  1861,  and  February  12, 
1862,  were  made  a  full  legal  tender,  without  exception  for  all 
debts,  dues  and  demands.  And  so  valuable  were  they  that 
when  gold  went  up  to  285^  as  compared  to  the  issues  of  the 
greenback  (which  were  only  a  partial  legal  tender)  these  cheap 
money  notes  went  up  also  to  285$.  They  were  accepted  as  gold 
for  all  domestic  money  purposes.  How  can  this  phenomenon  be 
accounted  for,  if  the  Government  had  no  power  to  make  money 
valuable  by  law^  The  value  of  these  $60,000,000  was  not  only 
regulated  by  law,  but  law  declared  them  a  full  legal  tender  and 
they  were  always  accepted  as  such  wherever  tendered,  and  the 
law  creating  the  greenback  denied  them  full  legal  tender  power 
and  they  depreciated.  This  shows  clearly  that  civilized  law  can 
both  create  and  depress  value  which  Mr.  Newcomb  asserts  can- 
not be  done.  How  will  Mr.  Newcomb  reconcile  the  above  fact 
with  his  declared  idea,  viz:  "There  is  no  case  recorded  in  history 
of  a  Government  issuing  paper  money  not  redeemable  in  gold 
or  silver,  and  in  quantities  sufficient  for  commerce  without  that 
money  depreciating." 

Mr.  Newcomb  may  answer  "there  was  not  sufficient  for  com- 
merce" grant  it,  neither  did  the  next  issue  of  cheap  money  make 
sufficient,  yet  it  depreciated  as  compared  with  gold.  He  may 
answer  that  "the  Government  promised  to  redeem  them  in  gold," 
So  it  did  the  greenback  issue,  yet  the  latter  depreciated  and  the 
first  did  not.  The  controlling  fact  in  this  case  was,  the  first 
issue  was  made  a  full  legal  tender,  the  same  as  gold,  while  the 
next  issue  was  shorn  of  much  of  its  power  like  Sampson  in 
the  lap  of  Deliah. 

There  are  those  who  believe  in  the  power  of  civilized  law  and 
in  the  power  of  Governments  to  give  value  by  law,  to  deeds, 
mortgages,  contracts,  records,  money,  etc.,  although  all  are  made 
of  paper  containing  no  intrinsic  value. 

Our  Constitution  gives  power  to  Congress  to  "coin  money  and 
regulate  the  value  thereof."  We  see  from  the  above  reference 
that  Congress  has  "coined  money"  and  really  "fixed  its  value" 


78 

and  issued  bills  of  credit  as  money  and  fixed  their  value  and  their 
value  was  equal  to,  and  just  as  steady  as  gold  in  the  case  cited. 
Yet  Mr.  Newcomb  says  it  can't  be  done  and  to  believe  it  can 
"is  a  pure  superstition,"  but  we  see  it  has  been  done  time  and 
again,  in  several  instances  besides  the  above  mentioned. 

The  creation  of  money  is  not  an  enterprise  or  an  industry  that 
every  citizen  has  a  legal  right  to  engage  in,  neither  is  it  a 
product  of  nature,  or  of  the  physical  or  mental  powers  of  man. 
Money  is  a  tool  that  commands  all  tools,  and  the  most  important 
tool  used  in  producing,  measuring  and  exchanging  wealth,  and 
is  made  in  pursuance  of  sovereign  law  only; 

Page  42,  he  says,  "Every  man  of  intelligence  knows  that  the 
coined  money  of  all  nations  is  worth  only  the  gold  which  is  in 
it,  except  the  coin  bears  a  slight  premium  owing  to  the  certainty 
that  it  is  the  real  metal.  *  The  stamp  of  Government 

goes  for  absolutely  nothing  except  as  a  certificate  of  the  weight 
and  fineness  of  the  metal." 

Mr.  Newcomb  fails  to  distinguish  between  coined  bullion  and 
money,  to  assist  him,  I  refer  to  the  American  trade  dollar  which 
is  only  coined  bullion  and  has  none  of  the  qualities  of  money 
and  although  it  contains  J\  grains  of  silver  more  than  the  ordi- 
nary dollar,  the  ordinary  dollar  which  is  a  full  tender,  is  worth 
more  than  the  trade  in  the  market.  If  there  is  no  power  in  law 
to  give  value,  how  will  Mr.  Newcomb  explain  the  different  values 
of  these  two  coins,  seeing  the  one  of  the  least  value  has  the  most 
metal  in  it.  "Congress  can't  give  value  to  anything,"  says  Mr. 
Newcomb.  If  that  be  true,  a  Government  bond  is  valueless,  be- 
cause the  paper  upon  which  it  is  printed  is  valueless,  all  laws 
are  useless  for  the  same  reason.  Cheap  money  has  no  value 
only  as  they  can  be  exchanged  for  gold  and  so  on  to  the  end  of 
the  chapter.  Can  an  intelligent  thinking  man  believe  such  state- 
ments with  the  light  of  historical  facts  before  him  ?  Our  Consti- 
tution gives  the  power  to  Congress  to  "coin  money  and  regulate 
the  value  thereof,"  issue  bills  of  credit  and  fix  their  value,  etc., 
must  we  confess  that  there  is  no  power  in  the  Government  to 
perform  these  functions  that  are  demanded  by  our  fundamental 
law? 

Mr.  Newcomb  says,  "Every  man  of  intelligence  knows  that 
the  coined  money  of  all  nations  is  worth  only  the  gold  which 
is  in  it."  Every  man  of  intelligence  and  Mr.  Newcomb  knows 


79 

no  such  thing,  but  Mr.  Newcomb  knows  that  all  nations  make 
their  coined  money  light,  to  prevent  other  nations  from  drawing 
it  from  them  when  trade  is  against  them,  which  would  surely  be 
done  if  the  coins  were  of  "full  weight  with  the  merchants.'* 
Notwithstanding  all  legal  tender  coins  are  of  light  weight,  they 
pass  readily  at  100  cents  to  the  dollar  in  the  countries  where  they 
are  made  to  circulate.  If  Mr.  Newcomb  had  said,  "No  nation  can 
give  value  to  money  by  law  to  circulate  in  other  nations  we  could 
not  object,  but  he  makes  no  distinction  between  domestic  and 
foreign  use,  between  national  money  and  international  balances 
to  be  paid  in  bullion.  We  quote  "A  maxim  is  often  quoted 
which  is  true  in  one  sense,  but  not  true  in  another,  *  *  It 
is  said  that  the  "dollar  is  anything  which  the  law  makes  it."" 
This  we  claim  for  truth,  and  ask  Mr.  Newcomb,  if  he  ever  saw 
money  of  any  kind  that  was  not  made  so,  by  the  law  of  some 
country  ?  I  have  seen  coins  not  made  by  Government,  and  some 
made  by  Government  that'  were  not  money,  and  they  passed 
only  for  the  worth  of  the  metal  they  contained.  The  trade  dol- 
lar is  one  of  that  kind,  but  legal  tender  money  "is  anything  which 
the  law  makes  it"  and  sovereigns  make  it  of  any  kind  of  material 
they  choose.  They  have  the  power  and  they  do  make  it  of  gold, 
silver,  paper  and  other  material. 

Mr.  Newcomb  reasons  like  an  unscrupulous  paid  attorney, 
he  quotes  suppositions  for  facts,  compares,  supposes  and  asks 
foolish  questions  in  order  to  show  their  weakness.  That  is,  he 
sets  up  a  man  of  straw,  knocks  it  down  and  then  tries  to  make 
people  believe  he  has  done  wonders.  As  for  instance,  he  says, 
"at  this  stage  the  reader  may  ask,  'what  harm  if  the  currency 
does  depreciate?  What  difference  whether  it  takes  two  or 
two  dozen  paper  dollars  to  buy  a  pair  of  shoes  so  long  as  they 
pass  current  ?' '  I  submit  there  never  was  such  an  unlikely  ques- 
tion asked  or  ever  will  be  asked  by  any  of  his  readers.  I  am 
quite  sure  no  cheap  money  man  would  seriously  ask  it,  as  it 
only  exists  in  the  gold  board  attorney's  anxious  brain,  so  as  to 
give  him  an  opportunity  to  use  many  words  to  show  how  unwise 
it  was  to  use  depreciated  paper  money  which  every  school  boy 
knew  without  the  learned  effort  of  a  gold  advocate.  If  Mr. 
Newcomb  had  supposedly  asked  "What  difference  does  it  make 
whether  the  money  be  gold,  silver  or  paper  so  long  as  it  all 
passed  current  at  its  face  value,"  and  then  reasoned  the  paper 


8o 

and  silver  money  away  as  an  evil,  we  should  have  admired  his 
skill.  Mr.  Newcomb  is  so  infatuated  with  gold  he  can  see  no 
value  or  virtue  in  any  other  kind  of  money. 

Yet  he  says,  "gold  is  made  more  valuable  by  being  used  as 
money;"  that  being  true,  the  extra  value  is  given  to  it  by  law, 
as  it  is  the  law  that  authorizes  its  use  as  money.  Query — If  the 
law  can  add  value  to  a  quantity  of  gold,  why  not  to  silver  and 
to  paper  as  money?  Yet  he  ignores  all  legal  value.  All  money 
is  made  and  its  value  fixed  in  pursuance  of  some  law.  It  must 
be  remembered  that  gold  and  silver  is  not  the  money  of  civiliza- 
tion, but  of  feudalism  and  barbarism,  paper  money  made  its  ap- 
pearance since  the  dawn  of  civilization,  hence  it  is  the  money  of 
civilization. 

At  a  bankers'  meeting  held  at  Saratoga  some  years  ago,  they 
reported  that  only  i-J^  of  gold  was  used  in  the  business  of  the 
country.  An  important  enquiry  may  be  here  made,  viz:  If 
9&|$  of  the  business  of  this  country  is  now  transacted  without 
gold,  is  it  not  possible  that  the  other  i^fc  could  be  transacted 
without  causing  confusion  in  business  circles.  The  aim  of  Mr. 
Newcomb  appears  to  be  to  make  law  appear  ridiculous  and  thus 
make  the  acts  of  Congress  a  laughing  stock,  when  they  make 
cheap  money.  He  further  says,  "If  now,  the  reader  will  here- 
after remember  that,  'dollar'  is  only  a  word,  not  a  thing,  that 
calling  a  thing  a  dollar  by  Act  of  Congress  does 

not  make  it  worth  twenty-three  grains  of  gold,  any  more  than 
calling  a  piece  of  paper  a  horse,  and  have  it  declared  and  stamped 
a  horse  by  Act  of  Congress,  would  make  it  draw  a  carriage." 
The  above  is  not  sound  reasoning,  nor  a  supposable  case,  for 
while  the  Constitution  does  not  give  power  to  Congress  to  make 
horses  out  of  paper  to  draw  carriages.  It  does  give  them  power 
{and  they  exercise  it)  to  make  measures  of  value  out  of  95  cents 
worth  of  gold,  50  cents  worth  of  silver  and  a  piece  of  paper  worth 
I  cent  and  declare  them  a  legal  measure  of  value  for  23  grains  of 
gold  or  100  cents  worth  of  any  other  kind  of  property.  And 
as  laughable,  impossible  and  foolish  as  it  may  appear  to  Mr. 
Newcomb.  Congress  has  actually  "went  and  done"  what  the 
Constitution  commands  them  to  do  and  which  Mr.  Newcomb  says 
they  cannot  do.  If  any  further  proof  is  wanted  on  this  point 
to  prove  that  Congress  has  and  can  make  just  measures  of  value 
out  of  other  material  than  gold  and  silver.  I  could  again  point 


8i 

to  the  first  $60,000,000  of  paper  money  issued  during  the  late 
civil  war,  which  never  depreciated  a  farthing,  but  when  gold  went 
up  to  285^  this  cheap  money  also  went  up  to  285^. 

Remember  Mr.  Newcomb,  Congress  made  that  cheap  money 
by  process  of  law,  although  you  say  they  can't  do  it. 

He  says,  "If  Congress  should  enact  that  all  the  foot  and  yard 
measures  of  the  country  should  be  made  of  a  kind  of  rubber 
which  would  shrink  to  nine  inches  in  the  course  of  a  few  months, 
but  which  were  nevertheless  stamped  "one  foot  by  Act  of  Con- 
gress" or  "one  yard"  as  the  case  might  be,  everybody  would  see 
at  a  glance  how  ridiculous  it  would  be  to  buy  and  sell  by  such 
a  measure."  This  is  another  unreasonable  and  an  unsupposable 
case,  as  the  Constitution  gives  Congress  power  to  coin  money 
and  regulate  the  value  thereof  and  only  to  fix  the  standard  of 
weights  and  measures,  not  to  make  the  measures  of  rubber  or 
anything  else,  moreover  Congressmen  are  not  fools,  that  they 
should  do  such  a  supposeable  foolish  thing  as  making  rules  or 
yard  measures  of  rubber,  even  had  the  duty  been  laid  upon  them 
of  making  the  measures  as  well  as  to  fix  the  standard,  as  in  the 
case  of  money.  Again  he  says,  "All  the  difficulty  of  this  matter 
arises  from  the  fact  that  value  is  something  which  cannot  be  seen 
nor  felt."  This  statement  is  true,  but  we  think  Mr.  Newcomb  did 
not  mean  to  tell  so  plain  a  fact,  as  he  has  been  telling  us  so 
much  about  the  value  of  gold,  the  value  of  the  gold  dollar,  the 
value  of  23  grains  of  gold,  etc.,  all  through  his  A.  B.  C.  of 
Finance.  These  values  can  both  be  seen  and  felt.  The  sentence 
is  true,  as  money  value  is  nothing  more  nor  less  than  sovereign 
powr  and  the  material  of  the  money  is  only  the  legalized  agent 
of  the  sovereign  to  express  the  power  of  money.  Mr.  Newcomb 
has  argued  and  I  presume  believes  that  all  cheap  money  will 
depreciate  if  not  redeemable  in  coin  at  the  will  of  the  holder. 
We  believe  that  we  have  shown  beyond  a  doubt,  that  Congress 
has  a  right  to  perform,  and  has  accomplished  what  Mr.  Newcomb 
says  cannot  be  done,  viz :  made  a  cheap  money  that  never  depre- 
ciated and  we  believe  this  book  shows  clearly  how  it  can  be 
done  again,  and  if  circulated  as  this  bill  provides  it  will  be  cheap 
to  the  people  as  well  as  to  the  maker. 

It  shows  how  the  Government  can  take  95  cents  worth  of 
gold,  50  cents  worth  of  silver  and  a  piece  of  paper,  and  make 
each  into  money  that  will  justly  measure  100  cents  worth  of  any 


82 

kind  of  property,  even  gold  and  silver.  "What,"  says  Mr. 
Newcomb,  "the  Government  make  money  out  of  50  cents  worth 
of  silver,  or  a  worthless  piece  of  paper  that  will  justly  measure 
and  pay  for  one  dollar's  worth  of  silver  or  gold?  Impossible." 
Yet  the  Government  is  doing  it  every  day,  and  has  been  at  it  for 
years,  and  if  made,  circulated  and  redeemed  as  this  bill  provides 
they  will  all,  always  be  with  as  measures  of  value  100  cents  to 
the  dollar,  no  more,  nor  no  less.  Such  would  be  cheap  money 
in  two  ways,  cheap  to  the  maker  and  cheap  to  the  people,  be- 
cause it  would  be  loaned  directly  to  those  who  use  it.  Thus 
differing  from  the  cheap  money  of  the  National  Banks  which 
is  loaned  only  to  speculators  for  one  per  cent,  interest  who  re-loan 
it  to  the  producers  of  wealth,  from  6  to  10  times  that  amount, 
and  thus  it  becomes  dear  to  those  who  use  it,  although  made  of 
cheap  material. 


CHAPTER  XIX. 

CURRENCY  VOLUME. 
Who  Should  Decidef 

President  Garfield,  when  speaking  upon  the  above  subject 
used  these  words:  "But  I  admit  freely  that  no  Congress  is  wise 
enough  to  determine  how  much  currency  the  country  needs. 
There  never  was  a  body  of  men  wise  enough  to  do  that.  The 
volume  of  currency  needed  depends  upon  laws  that  are  higher 
than  Congress,  and  higher  than  Government. 
The  laws  of  trade  alone  can  determine  its  quantity." 

President  Grant  said:  "The  experience  and  judgment  of  the 
people  can  best  decide  just  how  much  currency  is  required  for 
the  transacting  of  the  business  of  the  country.  It  is  unsafe  to 
leave  the  settlement  of  this  question  longer  to  the  Secretary 
of  the  Treasury  or  to  the  Executive." 

The  above  truths  uttered  by  these  noted  men  are  just  what 
every  man  would  say,  who  had  ever  investigated  and  mastered 
the  subject.  We  see  all  through  the  past  ages,  Emperors,  Kings, 
Presidents,  Parliaments,  Congress,  etc.,  trying  to  regulate  the 
amount  of  money  their  people  require.  But  assuming  to  decide 
a  question  that  belong  alone  to  trade,  they  invariably  failed,  as  the 
trade  depression,  financial  flurries  and  money  panics  fully  attest. 

And  after  all  these  lessons  of  failures,  it  is  only  the  advanced 
thinkers  like  Grant  and  Garfield  who  have  discovered  that  the 
"volume  of  currency  needed  depends  upon  laws  that  are  higher 
than  Congress  and  higher  than  Government.  The  laws  of 
trade  alone  can  determine  its  quantity."  Yet  speakers  and 
writers  the  world  over,  bullionists  and  greenbackers,  assume 
to  dictate  about  the  quantity  of  currency  the  people  requires. 

Witness  our  Congress,  almost  every  session  there  has  been 
more  or  less  wrangling  over  the  money  question  and  what  a 
botch  they  have  made  of  it.  Legislating  upon  the  quantity  of 


84 

money,  a  question.  "There  never  was  a  body  of  men  wise 
enough  to  determine." 

Mr.  Sears  says:  "The  volume  of  money  required  for  produc- 
ing, utilizing  and  exchanging  property  is  necessarily  determined 
by  the  same  law  which  governs  production  and  exchange,  viz: 
demand  for  use.  Enough  money  for  equivalent  exchange  is 
the  law  of  volume.  Therefore,  arbitrary  limitation  of  the  volume 
of  money  is  a  violation  of  the  natural  law  of  exchange,  and  is 
void  of  right,  as  would  be  a  like  limitation  of  production  and 
exchange." 

The  quantity  of  money  required  for  the  people's  use,  is  not 
the  only  thing  to  be  considered  when  discussing  the  money  ques- 
tion. A  just  and  sure  way  of  distribution  is  also  important.  There 
may  be  food  enough  in  the  stable,  but  if  the  horse  can't  get  it, 
it  will  starve  as  quickly  as  though  none  existed. 

So  it  is  with  our  money,  there  may  be  enough,  but  to  the 
extent  it  does  not  circulate,  it  is  the  same  to  the  people  as 
though  there  were  no  money  and  the  effect  thereof  has  been 
sore  upon  the  people  the  past  eight  years.  Money  to  be  useful 
must  be  circulated  as  well  as  created  in  full  quantity. 

The  Government  department  banking  bill  advocated  in  these 
pages  leaves  the  volume  of  money  and  its  distribution  to  be 
decided  by  the  natural  law — "Demand  for  use"  and  as  long  as 
the  natural  law  is  allowed  to  act,  under  this  bill  there  will  never 
be  a  deficiency  or  a  surplus  in  circulation.  When  there  is  money 
enough  for  all  to  borrow  and  borrowers  enough  for  all  to  lend, 
our  money  system  will  be  perfect. 

When  there  are  borrowers  with  good  security  but  no  money 
to  be  borrowed,  or  plenty  of  money  but  no  borrowers,  the  system 
is  imperfect  and  the  country  suffers  loss;  labor  and  capital  are 
idle,  trade  languishes,  failures  are  frequent,  distrust  prevails  and 
suffering  and  misery  abound,  which  is  our  present  situation. 

This  bill  if  enacted  by  Congress  is  not  intended  to  make  a 
money  for  Europe,  Asia  or  Africa,  but  only  for  the  people  of 
the  United  States. 

This  bill  would  produce  only  public  money,  a  money  never  yet 
produced  by  our  Congress  so  far  as  this  writer  knows.  The 
exchanging,  measuring  and  paying  value  of  this  money,  its  in- 
terest value,  how  loaned,  how  redeemed,  how  secured  are  all 
fixed  by  the  bill.  This  bill  creates  money  to  assist  production 


85 

and  facilitate  exchange,  and  makes  it  all  worth  just  100  cents 
to  the  dollar,  no  more,  no  less,  though  made  of  paper  and  silver 
as  well  as  of  gold.  Let  me  ask  did  we  ever  have  such  a  cur- 
rency without  a  gold  redemption?  Or,  a  money  system  that 
drove  out  the  poorer  currency  leaving  only  the  best  to  circulate  ? 
Or  a  system  that  would  distribute  money  in  all  parts  of  the 
country  to  rich  and  poor  upon  the  same  terms  in  either  large 
or  small  sums  at  an  equitable  interest?  Again  I  ask,  would  not 
the  system  outlined  in  the  bill  produce  every  item?  Does  any 
deny  the  constitutional  right  of  the  people  to  have  Congress 
enact  such  a  bill  ?  Xo!  Then  let  the  people  wake  up  and  demand 
its  enactment. 

We  have  now  been  floundering  in  the  slough  of  private  money 
the  past  century  and  every  few  years  almost  sink  beneath  its 
mirery  surface  as  it  has  proved  itself  unreliable  and  unsafe  to 
stand  upon,  yet  no  safer  place  has  been  permitted  though  fre- 
quently demanded.  And  it  is  said  the  dominant  party  in  the 
last  campaign  employed  1700  lecturers  and  expended  $16,000,000 
to  prevent  any  change,  so  we  must  endure  the  private  money 
affliction  another  four  years  before  another  attempt  can  be  made 
to  reach  solid  financial  footing.  Of  course  we  must  admit,  the 
real  money  question  never  was  fairly  before  the  American  people 
for  their  approval.  The  free  coinage  of  silver  only  was  prom- 
inent last  presidential  campaign  and,  we  believe  was  justly 
settled,  as,  had  it  been  otherwise  settled,  it  would  have  rivetted 
the  private  money  curse  more  firmly  upon  us  without  touching 
the  money  question. 

Silver  is  only  one  of  the  materials  upon  which  money  may 
be  stamped.  The  money  question  is,  "shall  we  continue  the  ex- 
clusive use  of  private  money  or  shall  TCT  supplement  it  with  public 
money.  Private  money  promises  no  improvement.  Public  money 
promises  much  as  these  pages  testify.  This  being  the  case  would 
it  not  be  wise  statesmanship  to  try  for  once  public  money  by  en- 
acting the  foregoing  bill. 


CHAPTER  XX. 

HARD  TIMES. 
Finance  and  Money. 

Colonel  Carroll  D.  Wright,  in  his  last  report  on  labor,  says 
that  "no  less  than  one  hundred  and  thirty-four  separate  and 
distinct  causes  have  been  assigned  for  the  present  depression  in 
business  and  'hard  times.'  Among  them  are  given  the  following 
causes  which  induce  money  lenders  to  refuse  loans." 

"Change  of  administration,  failure  of  banks,  aggressiveness  of 
capital,  attitude  of  capital  against  labor,  timidity  of  capital,  want 
of  confidence,  corners,  creation  and  monopoly  of  large  corpora- 
tions, the  credit  system,  decrease  of  gold,  dishonest  currency, 
want  of  confidence  in  the  Government,  enforced  idleness,  high 
rate  of  interest  charged  the  producing  classes,  high  •  rents, 
enormous  taxation,  consolidation  of  wealth,"  etc. 

If  all  of  the  134  allegations  have  not  been  instrumental  as 
charged,  there  are  enough  of  them  to  frequently  "induce  money 
lenders  to  refuse  loans  and  thus  bring  about  'hard  times.' '  As 
hard  times  are  brought  about  by  man's  timidity  and  selfishness 
in  hoarding  and  hiding  away  of  money  for  fear  of  loosing  it. 
Whereas  times  are  always  good  in  America  when  money  circu- 
lates freely,  and  that  would  always  be  the  case  if  a  Government 
banking  department  should  be  established,  such  as  the  bill  else- 
where referred  to  provides.  Said  department  having  power  to 
loan  and  redeem  money  and  only  limited  by  business  demands. 

It  is  intimated  in  the  report  above  referred  to,  that  if  money 
lenders  did  not  refuse  loans  there  would  be  no  hard  times,  and 
that  hard  times  would  cease  if  money  was  freely  circulated. 
This  no  doubt  is  a  sensible  and  truthful  conclusion,  as  no  money 
panic  ever  occurred  when  money  was  in  lively  circulation  among 
the  people,  and  panics  have  been  checked  and  money  made 
plenty  simply  by  an  issue  of  new  money.  As  it  is  said  that  Lord 


87 

John  Russell — by  straining  a  point  and  instructing  the  English 
bank  to  resume  its  discounts  stopped  an  important  panic  in 
1797,  and  made  money  plenty  and  cheap  in  all  England,  and  the 
United  States  branch  bank  performed  a  similar  feat  in  1834. 

During  the  rebellion,  the  Government  circulated  money  liberal- 
ly, and  the  whole  northern  people  prospered  as  never  before, 
the  country  grew  richer  year  by  year,  notwithstanding  a  million 
of  men  were  engaged  in  consuming  and  destroying  most  of  the 
time  and  producing  nothing. 

The  abundance  of  money  enabled  the  people  to  more  than  make 
good  the  losses  of  war,  and  this  prosperity  continued  after  the 
war  until  Congress  destroyed  most  of  the  money  that  caused 
the  good  times,  reducing  the  per  capita  circulation  from  $5841 
in  1864  to  $15  per  capita  in  1876,  and  the  business  of  the  country 
proportionately  shrunk,  and  finally  collapsed  in  1873  into  one  of 
the  worse  money  panics,  or  business  depressions  the  country  had 
ever  suffered. 

From  the  three  historical  facts  above  noted,  this  may  be 
observed,  the  first  two  stopped  what  promised  to  become  an 
important  money  panic  by  resuming  the  circulation  of  money 
and  in  the  latter  case  a  prolonged  panic  was  brought  on  the 
country  by  the  destruction  of  the  greenbacks  and  other  treasury 
notes,  which  were  the  life  of  business. 

By  the  skilled  hand  of  man  and  the  intelligent  direction  of 
his  brain,  from  eight  to  ten  billions  of  property  are  yearly 
produced  in  these  United  States  and  it  all  has  to  be  paid  for  in 
money  while  being  produced  and  some  of  it  of  a  crude  nature 
has  to  be  transformed  many  times  at  great  expense  before  it  is 
sufficiently  refined  for  the  use  of  man.  The  farmer  produces  the 
wheat,  the  miller  the  flour,  the  baker  the  bread.  The  miner 
extracts  the  oar,  the  manufacturer  makes  the  crude  and  refined 
iron,  steel  of  all  grades,  implements  for  rough  work,  and  un- 
numbered instruments — cutlery,  rough  and  refined  made  by 
different  hands,  and  different  manufacturers,  and  so  on  to  the 
end  of  the  chapter,  through  all  kinds  of  production,  and  all 
grades  of  manufacture,  and  money  is  the  tool  of  exchange  as  well 
as  of  production.  It  is  burdensome  to  think  that  the  character 
of  our  money  institutions  is  such  that  selfish  man  holds  the 
purse  strings  and  has  full  charge  of  the  head-gates  and  controls 
this  vast  and  important  currency  stream,  upon  which  all  this  and 


88 

all  other  business  depends,  and  has  power  to  check  or  foster  at 
will  the  business  of  the  country  from  which  all  the  necessaries 
and  luxuries  of  life  for  the  people  are  drawn. 

Can  it  be  wondered  at,  that  trouble  and  panic  in  business  is  so 
freqeuntly  met  with,  when  selfish  timid  man  has  charge  of  this 
stream  of  currency,  seeing  that  many  of  the  scarce-crows  or 
bugaboos  above  named  are  constantly  before  his  eyes  and  shout- 
ed in  his  ears,  which  frequently  cause  him  to  check  the  money 
stream  and  thus  check  business,  before  himself,  sees  any  danger. 
But  his  interest,  his  selfishness  is  always  urging  him  to  "be 
cautious." 

The  selfishness  and  timidity  of  man,  and  the  trouble  arising 
from  a  panicy  check  to  business,  admonishes  the  people  that 
their  Government,  not  man,  should  control  the  money  stream  of 
the  country,  so  as  to  keep  business  always  healthy  when  man 
refuses  loans.  Governments  are  not  selfish,  man  is,  Government 
administers  for  -the  good  of  the  people,  man  alone  for  himself. 

Man  is  cautious,  Government  has  nothing  to  fear;  man  can  re- 
fuse loans.  Government  cannot.  If  the  security  is  legal,  man 
dickers  for  a  larger  interest,  more  security  or  a  better  oppor- 
tunity, the  Government  could  not  procastinate  or  dicker  about 
interest  or  security,  as  the  law  settles  both,  man  may  demand 
his  money  when  the  borrower  is  least  able  to  pay,  Government 
lets  everything  rest  as  long  as  the  interest  is  promptly  paid,  man 
takes  the  largest  interest  he  can  get;  Government  takes  only  what 
the  law  allows.  Government  loans  for  the  good  of  all,  man  for 
his  own  good.  The  profits  on  Government  loans  go  to  the 
people.  The  above  with  scores  of  other  reasons  should  be  suffi- 
cient to  convince  all,  that  no  one  with  more  selfishness  or  less 
power  to  serve  the  people  than  their  Government,  should  ever 
be  intrusted  with  the  circulation  of  their  business  life-blood,  by 
means  of  which  all  live  and  enjoy  life.  Caution  is  inherent  in 
private  money  lenders,  and  prompts  them  to  refuse  loans  upon 
slight  alarm  even  when  undoubted  security  is  offered  and  plenty 
of  money  at  command,  this  is  well  known.  The  people  have 
the  right  and  should  demand  a  more  sure  and  perfect  distribu- 
tion of  money.  They  should  demand  a  well  spring  of  currency 
that  never  dries  of  which  all  may  partake.  Such  would  be  the 
Government  banking  department  above  referred  to  which  we 


89 

have  been  trying  to  impress  upon  the  minds  of  the  American 
people  the  past  twenty-five  years. 

The  enactment  of  the  bill  herein,  would  inaugurate  the  banking 
system  referred  to.  Then  there  would  be  money  enough  for  all 
to  borrow  and  borrowers  enough  for  all  to  lend.  No  more 
"hard  times,"  no  money  panics  possible  under  this  public  money 
system,  which  should  be  reason  enough  to  justify  its  adoption, 
besides  it  has  every  virtue  claimed  for  all  other  money  systems  with 
none  of  their  defects.  Improvements  may  be  made  in  its  details,, 
but  its  fundamental  principles  cannot  be  improved  as  the  party 
who  makes,  circulates  and  redeems  the  money  is  the  Government, 
to  whom  the  Constitution  grants  the  right,  and  the  profits  go 
to  the  people  to  whom  it  belongs.  This  cannot  be  improved — 
its  language  may.  This  system  allows  everyone  to  loan  all  his 
money,  and  if  need  be  provides  the  customer.  Could  any  money 
system  be  more  accommodating,  or  more  just  to  every  citizen? 

All  should  favor  a  money  system  that  promises  so  much  good 
unmixed  with  evil,  and  "hard  times,"  come  again  no  more. 


CHAPTER  XXI. 

LIMITING  THE  SUPPLY   OF  MONEY,   LIMITS   PRO- 
DUCTION AND  OTHER  BUSINESS. 

As  well  should  Congress  deny  the  natural  law  of  production 
by  defining  by  statute  how  much  should  be  produced,  as  to  limit 
by  law  the  amount  of  money  to  be  used,  as  money  is  the  tool  in 
the  hands  of  labor  used  to  produce  all  wealth  and  should  be 
limited  only  by  the  natural  law,  viz:  "Demand  for  use."  Money 
was  invented  for  use  in  the  industries  to  assist  in  producing, 
measuring  and  exchanging  wealth. 

Congress  would  not  claim  any  right  in  itself,  or  any  intention 
(even  of  limiting  production  and  business  by  statute,  yet  it  is 
•easily  seen  that  limiting  the  tool  by  which  all  business  is  trans- 
-acted  and  all  wealth  produced  and  thereby  rendering  it  too  scarce 
and  too  expensive  to  use,  thereby  indirectly  limits  production 
and  business  as  effectually  as  though  they  had  been  limited  by 
direct  statute.  None  will  deny  that  production  and  business 
would  be  greatly  increased  if  money  was  supplied  on  demand  to 
every  citizen  who  produced  the  required  security,  and  only  3$ 
per  annum  interest  charged  for  the  same.  A  producer  enabled 
to  borrow  at  a  3$  rate  could  afford  to  use  in  his  business  three 
times  as  much  money  as  he  could  if  he  had  to  pay  10$  for  the 
tool  to  work  with.  It  is  plain  to  see,  that  more  could  be  pro- 
duced with  $3,000  for  which  only  3$  interest  is  paid,  than  could 
be  produced  with  $1,000  and  10$  interest.  Less  interest  is  paid 
per  year  for  the  large  than  for  the  small  sum.  Business  men 
will  use  more  money  if  3$  only  is  demanded,  than  if  they  had 
to  pay  6$.  They  would  use  more  at  6$  than  if  they  had  to  pay 
12$  or  more  as  many  do,  and  thus  keep  business  healthy  by 
keeping  more  money  circulating  among  the  people  to  pay  labor, 
to  produce  products  for  export  and  home  use,  and  distribute  it 
after  it  is  produced. 

An  abundance  of  money,  plenty  of  money  in  circulation,  does 


produce  enterprise,  prosperity,  progress  and  plenty.  There  is  no 
doubt  about  that.  So  to  insure  prosperity  and  plenty  there  are 
three  essentials  required,  viz:  Plenty  of  money,  a  sure  way  of 
circulating  it,  and  an  equitable  interest  only — an  equitable  in- 
terest would  be  the  average  net  income  of  money  invested  in 
the  industries — agriculture,  manufacture,  mining,  trading,  etc. — 
which  statistics  inform  us  is  less  than  3^  per  annum  in  the 
United  States.  The  claim  "limiting  the  money  of  the  country 
limits  also  production"  is  correct.  Yet  all  money  systems  used 
in  this  country  from  its  foundation  have  been  limited  in  amount 
thus  limiting  labor,  limiting  production,  limiting  distribution 
of  wealth,  creating  financial  trouble  and  money  panics  with  all 
the  misery  they  imply.  Congress  is  the  only  power  in  this 
country  that  can  create  money  ample  in  amount,  and  cause  its 
distribution  in  pursuance  of  the  natural  law,  viz:  "Demand  for 
use."  To  fill  this  law  and  always  have  an  ample  supply  of  money 
to  circulate.  Congress  has  only  to  enact  the  foregoing  bill. 
Then  every  blessing  to  be  derived  from  an  ample  supply  of 
public  money  at  an  equitable  interest  could  always  be  realized. 
Then  no  more  money  flurries  and  money  panics,  or  business, 
enterprise  and  production,  checked  or  stopped  for  want  of  money, 
as  money  would  always  be  available  to  those  who  have  the 
security.  Then  no  more  money  monopoly  to  injure  business 
and  bring  loss  and  misery  upon  the  people,  as  should  owners 
of  private  money  hoard  it,  no  financial  trouble  could  result  of 
either  a  private  or  public  nature,  as  this  public  money  produced, 
owned  and  loaned  by  the  people — would  be  ample  to  fill  every 
channel  of  business  vacated  by  private  money,  and  fill  every 
channel  requiring  money,  that  private  money  has  been  too 
timid  to  fill  in  times  past. 

We  have  now  suffered  untold  financial  losses,  since  the  birth 
of  our  nation  by  the  compulsory  and  exclusive  use  of  private 
money. 

Now,  seeing  we  have  suffered  so  much — financially,  physically 
and  mentally  the  past  120  years  by  the  enforced  use  of  private 
money  and  no  improvement  in  our  money,  or  any  abatement  in 
the  evils  its  exclusive  use  entails  are  yet  in  sight,  would  it  not 
be  wise  to  try  public  money,  that  is  money  owned  and  loaned 
by  the  people,  as  that  seems  the  only  thing  that  promises  relief 
and  yet  keep  within  the  authority  of  the  Constitution.  It  should 
surely  be  tried  by  enacting  the  bill  above  referred  to. 


CHAPTER  XXII. 

VIEWS  OF  MR.  PRICE,  PROFESSOR  OF  POLITICAL 
ECONOMY  IN  OXFORD  UNIVERSITY,  ON  U.  S. 
CURRENCY— COMMENTS  ON  THOSE  VIEWS. 

The  press  makes  the  Professor  say  in  his  lecture  delivered  in 
New  York  in  October,  1874,  upon  the  above  subject,  that  the 
American  currency  is  "shockingly  bad"  and  says  "there  is  only 
one  step  to  be  taken,"  viz:  "extinction  of  inconvertable  paper." 
He  says,  "The  only  object  of  currency  is  for  exchanging  for 
goods."  That  being  true,  no  greater  difficulty  should  be  en- 
countered to  institute  a  currency  to  exchange  all  the  goods, 
than  there  is  to  supply  scales  to  weigh  them,  or  measures  to 
define  their  length,  "If  the  currency  is  thoroughly  convertable 
he  don't  think  it  is  of  great  importance  that  there  should  be  a 
large  stock  of  gold,  provided  the  currency  is  issued  by  an  issuer 
who  is  perfectly  safe  and  thoroughly  responsible  for  the  debt." 
If  the  currency  is  thoroughly  convertable  into  gold  on  demand 
we  fully  agree  with  the  above  views  of  the  Professor.  But  how 
the  currency  can  be  thoroughly  convertable  if  issued  upon  the 
old  theory  of  five  dollars  of  currency  to  one  of  gold,  the  Pro- 
fessor does  not  inform  us.  To  the  question,  why  should  not 
the  Government  be  the  issuer  of  convertable  notes  and  derive 
a  profit  from  them?  He  answers:  "The  profits  belong  to  the 
nation,  but  a  Government  or  a  President  are  bad  issuers  of  notes 
pledged  to  be  paid  on  demand.  You  cannot  get  the  Government 
of  the  United  States  into  a  bankrupt  court." 

From  -is  frequent  reference  to  the  Bank  of  England,  the 
Professor  evidently  has  his  eyes  upon  the  old  theory  of  banking 
— where  the  currency  is  inflated  four  hundred  per  cent.,  many  of 
such  have  failed  and  others  must  fail  sooner  or  later,  and  of 
course  require  the  services  of  a  bankrupt  court  to  settle  their 
estates.  Such  banking  and  principles  of  finance  are  no  more 
adapted  to  do  the  business  of  the  country  in  this  century,  than 


93 

the  old  Mexican  carts  with  their  ponderous  wooden  wheels  and 
raw-hide  fastenings  would  be  to  take  the  place  of  our  wagons 
and  railroads. 

If  the  Professor  had  studied  the  improved  theory  of  Govern- 
ment banking,  he  would  have  discovered  that  no  bankrupt  court 
would  ever  be  required  by  the  failure  of  such  a  bank.  He  would 
have  seen  that  it  would  be  as  impossible  for  a  combination  of 
Stewarts,  Vanderbilts,  Astors  and  Rothschilds  to  force  such  a 
bank  into  a  bankrupt  court,  as  it  would  be  for  them  to  suspend 
the  law  of  gravitation.  It  would  be  utterly  impossible  to  break 
such  a  bank.  Nothing  but  the  power  that  created  it  could  dis- 
solve it.  It  would  be  co-existent  with  the  Government  that 
created  it.  The  causes  which  break  other  banks  would  have  a 
contrary  effect  upon  this,  for  the  more  money  legally  drawn 
from  this  bank  the  richer  it  would  become.  The  Professor  would 
see  in  it  every  advantage  he  claims  should  attach  to  a  national 
currency.  He  claims  "one  single  form  of  issue  is  in  the  highest 
degree  expedient."  He  also  claims  ''the  profits  belong  to  the 
nation." 

With  this  banking  theory  in  operation,  the  nation  would  then 
receive  it,  but  it  would  not  receive  it  under  any  private  banking 
system  known. 

Notwithstanding  the  Professor  acknowledges  the  right  and 
responsibility  of  the  Government  to  issue  currency  and  to  re- 
ceive the  profits  thereof.  He  says,  "A  direct  issue  by  the  Gov- 
ernment is  radically  unsound  and  untrustworthy.  I  believe  that 
an  intermediate  agency  of  some  private  corporation  is  the 
method  and  the  deposit  of  the  National  Banks,  is  the  legitimate 
and  proper  security  to  be  required  of  the  issuers  of  notes." 

The  reasoning  of  the  Professor  would  seem  to  infer  that  prin- 
cipals can  grant  powers  to  subordinates  which  would  be  wrong 
or  dangerous  for  them  to  exercise  direct.  That  the  Govern- 
ment can  grant  powers  and  "profits"  to  "private  corporations," 
which  would  be  "unsound  and  untrustworthy,"  for  the  Govern- 
ment to  exercise  and  receive  the  profits.  And  he  points  to  the 
Bank  of  Kn gland  as  a  model  so  frequently  in  his  lecture,  that 
one  would  think  it  a  paragon  of  perfection  if  he  did  not  know  by 
its  history  many  of  its  short-comings  the  past  hundred  years. 

And  so  plainly  are  its  imperfections  shown  by  its  own  reports, 
which  if  true,  and  depositors  should  demand  their  money,  the 


94 

bank  would  have  to  suspend  payments  and  leave  most  of  its 
notes  unredeemed.  This  seems  the  chronic  condition  of  that 
noted  bank,  besides  this  it  has  frequently  suspended  specie  pay- 
ments in  times  past.  For  the  Professor  to  point  to  the  Bank  of 
England  as  a  worthy  example,  or  to  say  our  National  banking 
system  can't  be  improved,  shows  he  has  neither  studied  the  new 
system  of  Government  banking,  or  measured  the  power  of  the 
American  mind  to  devise  something  better  than  "intermediate 
agencies,"  that  have  cursed  the  civilized  world  for  ages  past 
with  their  issues. 

If  the  Professor  had  said  to  Fulton  while  constructing  his 
first  steamboat,  "Mr.  Fulton,  wind  is  the  best  agency  to  drive 
boats  through  the  water,  we  have  proved  its  power  in  driving 
vessels  around  our  island  the  past  thousand  years."  Or  if  he 
had  said  to  Professor  Morse,  "Professor,  it  is  impossible  for  you 
to  invent  anything  that  will  transmit  news  equaling  fast  runners, 
post  chaises,  fleet  horses,  automaton,  signs  and  signals  from 
high  hills,  etc.,"  it  would  have  been  on  a  par  with  his  above 
statement.  We  think  those  views  expressed  by  him  about  the 
improvement  of  banking  and  currency,  will  have  about  the  same 
effect  upon  those  minds  that  have  grasped  the  new  idea  of  Gov- 
ernment banking,  as  those  other  views  would  have  had  upon 
the  faith  and  actions  of  Fulton  and  Morse. 

Private  corporations  for  issuing  currency  as  recommended 
by  the  Professor  is  the  plan  pursued  by  most  civilized  nations 
for  ages.  Yet  all  nations  that  have  granted  this  power  to  corpora- 
tions have  had  their  periodical  financial  flurries,  revulsion  in 
business  and  money  panics. 

Such  are  the  natural  fruits  of  financial  corporate  monopoly, 
and  to  avoid  them  in  future,  some  more  perfect  system  of  cur- 
rency should  be  devised.  The  bill  herein  if  enacted  would  be  that 
more  perfect  system.  It  provides  a  United  States  gold  coin  stand- 
ard which  is  the  highest  money  standard  and  the  one  declared 
for  by  the  American  people  at  their  last  Presidential  election. 

It  provides  bimetallism  without  the  evils  of  free  coinage  of 
silver,  or  waiting  the  permit  of  other  nations.  It  provides  a 
money  owned  and  loaned  by  the  people,  to  individuals,  corpora- 
tions, States  and  the  Government,  upon  the  securities  the  law 
demands  and  at  a  rate  of  interest  not  to  exceed  3^  per  annum 
and  many  other  blessings  elsewhere  named.  We  fully  realize 


95 

the  badness  of  qur  present  currency  a  large  part  of  it  having 
been  paid  out  by  the  Government  for  a  consideration  long  since 
consumed,  it  is  therefore  not  a  representative  of  value  as  all  money 
should  be.  But  it  is  a  representative  of  a  debt  which  the  Gov- 
ernment owes  the  holder.  It  is  also  limited  in  amount,  and 
thereby  liable  to  be  hoarded,  locked  up  or  monopolized,  so  that 
a  small  part  only  would  be  available  for  business  purposes  and 
that  at  usurious  rate  of  interest.  Consequently  panics  must  fol- 
low with  its  continuance  as  was  the  case  in  1873  and  1893  and 
other  times.  The  Professor  demands  the  continuance  of  private 
money  only.  The  new  banking  system  produces  public  money 
only,  which  could  be  used  as  an  auxiliary  to  private  money  and 
prevent  all  money  panics. 


CHAPTER  XXIII. 


USURY  OR  EXORBITANT  INTEREST. 

MR.  EDITOR: — The  able  letter  of  Mr.  Bristol  in  your  paper 
upon  the  evils  of  usury,  and  the  necessity  of  usury  laws,  and 
the  note  of  Mr.  Prosser,  in  a  recent  issue,  are  encouraging  signs 
that  men  are  thinking  deeply  upon  the  evils  of  usury  and  its 
remedies. 

Enough  of  the  evils  of  usury  has  been  pointed  out  by  Mr. 
Bristol,  to  convince  all  honest  thinkers  that  something  should 
be  done.  I  write  not  to  point  out  more  evils  but  to  suggest 
another  remedy. 

Mr.  Bristol  urges  a  usury  law  by  the  State  and  severe  penalties 
for  attempted  invasion,  and  6fc  the  maximum  rate  of  interest. 
Mr.  Prosser  suggests  10$.  If  nothing  better  could  be  done  an 
arbitrary  law  such  as  proposed  by  Mr.  Bristol  is  certainly  de- 
manded. But  as  all  arbitrary  laws  are  objectionable  and  if  pos- 
sible secretly  evaded,  it  seems  to  me  a  law  that  would  render 
usury  laws  useless  and  usury  impossible,  would  be  more  desirable 
than  arbitrary  laws.  The  way  to  accomplish  that  object  is  very 
plain,  and  Congress,  not  the  States  should  be  the  people's  agent 
for  accomplishing  it.  To  Congress  is  confided  the  duty  to  "coin 
money,  fix  its  value,"  etc.  Yet  we  would  not  stop  usury  by  an 
arbitrary  national  law.  But  as  Congress  is  the  Constitutional 
fountain  from  which  all  money  flows,  it  is  its  duty  to  supply  all 
legitimate  demands  of  business  with  money  as  well  as  national 
bank  owners,  and  at  an  equitable  and  uniform  rate  of  interest. 
To  prevent  all  future  usury  let  Congress  enact  the  foregoing 
bill,  which  would  distribute  money  direct  to  the  people,  to  the 
States  and  to  the  Government,  upon  their  securities,  such  as 
bullion,  Government  and  State  bonds  at  90^  of  their  gold  market 
value,  and  real  estate  at  not  more  than  one-half  of  its  taxable 
value.  Not  for  i#  per  annum,  however,  but  at  an  approximate 
equitable  interest  of  3$. 


97 

Can  any  reasonable  objection  be  made  to  so  just  an  act,  seeing 
the  Government  is  already  one  of  the  largest  money  lenders 
of  the  world.  It  now  loans  the  National  Bank  owners  all  the 
currency  they  want  for  i^  per  annum  interest.  If  it  is  right  for 
Government  to  loan  currency  to  bank  owners,  it  must,  or  should 
be,  right  to  loan  to  all  classes  of  citizens. 

Could  this  idea  be  inforced  by  the  American  people,  no  arbi- 
trary usury  law  would  be  necessary  thereafter,  as  money  would 
then  be  ample  and  to  be  had  for  3$  per  annum  interest  in  all 
parts  of  our  country.  Our  Government  banking  department, 
would  stand  between  the  people  and  the  users,  the  same  as 
the  Post  Office  department  now  does  between  the  people  and 
the  express  companies  in  carrying  letters.  It  in  effect,  says  to 
the  express  companies :  "you  can  charge  what  you  please  for  car- 
rying letters,  but  I  will  charge  only  two  cents  each." 

There  would  be  nothing  arbitrary  about  this;  express  com- 
panies could  charge  what  they  pleased,  and  people  could  send 
letters  by  either  channel.  But  it  is  not  likely  the  express  com- 
panies would  have  a  large  letter  business  if  they  should  charge 
10,  25  or  50  cents  for  carrying  one  letter  as  they  did  formerly, 
and  but  for  the  postal  department  we  would  yet  be  compelled  to 
pay  much  larger  postage  than  we  do  now. 

liven  so,  would  this  usury  business  be  stopped,  if  Government 
would  take  the  same  stand  in  money  matters  it  has  in  the  postal 
business. 

If  the  foregoing  bill  was  enacted,  the  Government  would  not 
deny  Shylocks  exacting  a  usurious  interest,  but  it  would  say  in 
effect  to  the  people,  "Borrow  from  whom  you  please.  I  will 
supply  every  legitimate  demand  made  upon  me  for  money  at  an 
interest  of  3^  per  annum." 

Can  any  doubt  that  such  a  course  would  effectually  stop  all 
exorbitant  interest  in  these  United  States  without  arbitrary 
usury  laws? 

Is  not  tf  an  ample  tax  for  the  use  of  money  seeing  that  money 
invested  in  the  industries  in  times  past  yielded  less  than  three 
per  cent,  per  annum  as  per  Government  statistics?  Would  not 
money  distributed  upon  this  anti-usury,  equitable  plan,  come 
nearer  settling  the  usury  business  than  arbitrary  laws  ?  If  Gov- 
ernment banks  loaned  to  all  classes  of  citizens  for  3^,  Shylocks 
could  only  obtain  a  slight  advance  on  that  rate. 


98 

With  our  money  system  thus  permanently  arranged  for 
equitable  distribution,  farmers,  manufacturers,  miners,  in  fact 
every  citizen,  with  the  required  security,  could  obtain  money 
at  the  same  rate  per  cent,  as  business  men  and  bankers  of  New 
York.  If  the  money  question  was  thus  permanently  settled,  forty 
days  only  would  be  required  to  start  up  business  sufficient  to 
supply  every  idle  man  with  work. 

It  seems  to  this  writer,  should  our  oppressed  industries  be 
thus  released  from  an  insufficient  supply  of  money  and  the 
curse  of  usury,  a  season  of  prosperity  would  dawn  upon  our 
troubled,  suffering  land,  unparalleled  in  the  history  of  nations. 

If  Congress  should  cease  to  farm  out  the  distribution  of 
money,  and  distribute  it  to  the  people  direct,  as  well  as  to  create 
and  manufacture  it.  It  would  only  perform  its  strict  constitu- 
tional money  duty  to  the  American  people. 


CHAPTER  XXIV. 


FREE  SILVER  COINAGE,  ETC. 

If  the  Government  should  adopt  a  free  and  unlimited  coinage 
of  silver  as  a  settled  policy,  then  take  charge  of  the  coin  and 
issue  certificates  for  it,  the  care  of  it  must  in  the  course  of  time 
become  a  great  burden  to  the  American  people,  not  only  from 
the  expense  of  coining,  but  also  for  constructing  buildings  for 
storing  such  vast  accumulations,  and  the  storing  and  guarding 
of  it. 

The  people  cannot  and  will  not  use  the  coin,  only  a  limited 
amount,  the  Government  cannot  use  it,  is  not  compensated  for 
its  coinage  and  care,  the  metal  will  be  as  useless  to  man  as  it 
was  in  its  native  bed.  Yes  it  is  a  partial  security  for  the  certifi- 
cate, but  if  paper  money  is  wanted  it  could  be  issued  by  the  Gov- 
ernment and  secured  up  to  its  full  face  value  by  mortgage  upon 
real  estate,  bullion,  State  or  Government  bonds,  as  the  National 
bank  notes  are  now  secured  without  any  questionable  burden 
upon  the  Government,  whereas  if  paper  money  was  properly 
issued  by  loaning  upon  security,  the  Government  would  reap 
a  revenue  for  it,  and  without  risk  or  burden,  as  would  be  the 
case  in  coining  silver  and  caring  for  the  coin.  If  a  law  should 
be  enacted  for  free  coinage  silver  bullion  may  not  rise  in  value 
as  some  believe,  as  with  new  mines  opening  and  old  and  new 
ones  producing,  who  shall  say  that  silver  may  not  become  as 
valueless  in  America  as  it  was  in  Jerusalem  in  the  days  of 
Solomon.  "And  the  King  made  silver  to  be  in  Jerusalem  as 
stones  *  it  (silver)  was  nothing  accounted  of 

in  the  days  of  Solomon."  There,  silver  was  so  undesirable  and 
abundant  Solomon  would  not  have  even  his  drinking  vessels 
made  of  it. 

Silver  depreciated  in  value  during  the  life  of  the  Sherman 
silver  law,  notwithstanding  fifty-four  million  dollars  was  yearly 
coined  under  it.  The  coining  and  storing  of  it  in  vaults  may  for 


100 

a  time  increase  its  value,  but  it  must  eventually  continue  its  down 
grade,  as  the  storing  of  such  vast  amount  as  must  accumulate 
under  a  free  and  unlimited  coinage  law  in  a  few  decades,  must 
act  as  a  menace  to  the  silver  market  of  the  world,  as,  like  the 
Johnstown  reservoir,  its  contents  must  continue  to  increase  and 
the  barrier  that  holds  it  in  place  to  weaken  more  and  more,  and 
burst  it  must,  sooner  or  later  and  precipitate  its  contents  upon 
the  silver  market  of  the  world.  This  being  always  feared,  will 
act  as  a  wet  blanket  to  any  rise  in  the  price  of  silver. 

The  throwing  upon  the  market  of  .25,375  tons  of  silver  bullion 
by  Germany  in  1871-2  and  other  causes  at  work  about  that  time, 
knocked  the  bottom  out  of  the  silver  market,  and  it  has  been 
on  the  down  grade  ever  since.  Notwithstanding  the  United 
States  coined  $588,000,000  during  the  time  and  the  world  at 
large  very  much  more. 

The  25,375  tons  of  silver  thrown  upon  the  market  by  Ger- 
many, was  only  a  small  washout,  in  comparison  to  the  great 
flood  that  will  be  precipitated  on  the  market  upon  the  bursting 
of  our  silver  reservoir  after  a  few  decades  of  storing  under  a  free 
and  unlimited  Coinage  Act  in  the  United  States. 

A  large  amount  of  silver  coined  and  uncoined,  is  already  on 
hand  and  in  store.  There  appears  to  be  more  silver  produced 
than  is  wanted  for  use  as  money  or  in  the  arts  at  present  prices 
and  of  the  many  millions  coined,  one-fifth  or  so  is  only  used  by 
the  people  as  money,  they  preferring  Uncle  Sam  should  care  for 
the  coin  and  give  them  a  piece  of  paper  (a  certificate)  to  be 
used  as  money  in  its  stead. 

One  strong  reason  .vhy  no  more  silver  should  be  coined  than 
is  wanted  for  use  as  money,  is,  if  the  people  want  paper  money 
instead  of  silver  coin  they  can  be  supplied  with  a  better  money 
than  silver  certificates  or  any  paper  money  ever  yet  used  by  the 
people  of  these  States,  which  of  course  must  be  made,  owned 
and  loaned  by  the  people  and  administered  through  their  bank- 
ing department.  This  would  be  public  money  secured  up  to  its 
full  face  value  and  requiring  no  gold  redemption,  as  does  the 
silver  certificate,  it  being  private  money  and  only  partially  secured. 

The  justice  of  a  law  may  be  questioned  that  requires  fifty 
cents  worth  of  silver  bullion  coined  into  a  legal  tender  dollar 
for  private  gain,  and  coined  and  cared  for  at  public  expense, 
seeing  nothing  would  be  produced  by  it,  but  private  money  and 
millionaires. 


101 

The  bill  elsewhere  mentioned  in  these  pages  if  enacted  would 
produce  and  circulate  only  public  money.  It  will  give  us 
bimetallism  by  coining  and  circulating  all  the  silver  the  people 
want  to  use  as  money,  but  the  advantage  derived  from  the  fiat 
of  the  law  making  fifty  cents  worth  of  silver  into  a  legal  tender 
dollar  will  belong  to  all  the  people,  not  to  bullion  owners  only 
as  would  be  the  case  under  free  coinage,  and  under  that  bill, 
all  advantages  arising  from  the  making  of  paper  money  to  cir- 
culate equal  with  gold  money  will  also  belong  to  all  the  people, 
not  to  National  Bank  owners  as  at  present. 

If  it  is  right  for  the  Government  to  make  every  fifty  cents 
worth  of  silver  into  a  legal  tender  dollar  for  private  gain,  it 
would  be  also  right  for  the  Government  to  make  every  bushel 
of  wheat  worth  one  dollar,  although  worth  only  sixty  cents  now. 

It  is  evident  the  free  coinage  of  silver,  the  further  issue  of 
greenbacks  or  National  Bank  notes  or  any  other  addition  to 
private  money  will  never  settle  the  money  question.  The  money 
question  never  .can  be  settled  until  private  money  is  supplemented 
by  public  money. 

The  people  of  these  States  have  been  forced  to  use  exclusively 
private  money  or  none  since  the  first  formation  of  our  Govern- 
ment, and  in  consequence  have  been  cursed  with  business  depres- 
sions, money  flurries  and  money  panics,  on  an  average  of  about 
ten  years  during  that  whole  period,  and  the  logical  conclusion 
is,  if  there  is  no  change  for  the  better  in  our  monetary  system, 
there  will  be  no  improvement  during  the  next  hundred  years — 
a  thing  much  to  be  regretted,  and  should  not  be  permitted  to 
continue  as  it  is. 


CHAPTER  XXV. 


MONEY   PANICS— THEIR   CAUSE   AND    CURE. 

Money  panics  are  so  recent,  and  their  evil  effects  so  wide- 
spread, that  all  are  more  or  less  acquainted  with  them.  But 
their  cause  is  not  well  understood;  as  many  good  men  and  able 
minds  honestly  differ  upon  the  subject.  If  it  does  not  become 
better  understood  it  will  be  impossible  to  formulate  a  medicine 
for  its  cure.  "Over-trading,"  "speculation,"  "stock  gambling," 
"over-production,"  "high  tariff,"  "low  tariff,"  "tariff  agitation," 
etc.,  are  some  of  the  causes  attributed  to  produce  money  panics. 

I  fail  to  see  how  it  is  possible  for  a  lively  merchant  or  specula- 
tor to  make  money  scarce,  as  it  is  not  the  nature  of  either  to 
hoard  and  keep  money  from  circulating.  But,  to  the  contrary, 
they  are  the  wide-awake  men,  who  circulate  all  their  own  money 
and  the  money  of  others  if  they  can  get  it.  They  are,  they 
who  make  the  "nimble  six-pence  do  as  much  as  the  slow  shill- 
ing." The  man  who  keeps  his  money  "laid  up  in  a  napkin," 
too  cautious  to  use  it  himself  or  lend  it  for  others  to  use,  may 
make  money  scarce;  but  the  trader  and  speculator  never;  and 
even  the  stock  gambler  keeps  his  money  stirring,  although  he 
buys  and  sells  much,  yet  a  small  sum  of  money  suffices  to  make 
a  perfect  bedlam  of  certain  streets  in  our  large  cities,  and  what 
money  is  used  is  kept  in  lively  circulation.  Over-production  of 
farm  and  factory  may  make  money  in  demand  and  scarce  among 
producers,  but  they  hoard  no  money.  The  question  is,  in  panic 
times,  where  is  the  money?"  Neither  the  traders,  speculators, 
stock  gamblers,  nor  producers  have  got  it.  They  have  articles 
of  merchandise,  stocks,  debts,  articles  of  productive  industry, 
but  no  money.  Why  then  impute  the  sin  to  them  of  making 
money  scarce? 

The  unwelcome  truth  is,  all  money  is  private  property,  and 
when  the  products  of  the  country  are  greatly  multiplied  a  lively 
demand  is  made  for  money  to  exchange  them;  and  currency 


103 

being  limited  in  amount  and  all  in  private  hands,  causes  what 
is  termed  a  tightness  in  the  money  market  and  the  holders  of 
money  begins  to  think  money  is  everything,  and  they  had  better 
hold  on  to  it;  and  they  gather  their  money  from  their  creditors 
and  their  deposits  from  the  banks.  The  banks  having  loaned 
their  own  money  and  most  of  their  depositors  and  being  called 
upon  for  an  unusual  amount  of  deposits  become  alarmed,  and  not 
only  stop  their  discounts,  but  call  in  their  loans  where  possible; 
and  thus  general  distrust  spreads  until  the  money  is  all  locked 
up  or  withdrawn  from  circulation.  The  most  of  the  banks  are 
powerless — the  Government  is  powerless — friendship  and  old 
acquaintance  in  many  cases  is  laid  aside — all  is  distrust  and  con- 
fusion— business  is  prostrate  and  suffering  and  misery  abounds; 
and  all  this  when  the  country  is  literally  overflowing  with  abun- 
dance and  all  for  the  want  of  a  medium  of  exchange  to  keep 
business  alive. 

An  insufficient  supply  and  imperfect  distribution  of  money — a 
monopolizing,  hoarding  and  hiding  away  of  the  money  is  the 
true  cause  of  money  panics. 

The  cure  and  prevention  of  all  money  panics  in  the  United 
States  would  be  the  establishment  of  a  Government  banking  de- 
partment upon  the  principles  advocated  in  these  pages.  Then 
we  would  have  public  money  as  well  as  private — a  money  that 
did  not  all  belong  to  private  parties.  A  money  always  available 
for  business  purposes  and  always  to  be  obtained  by  all  who  pro- 
duced the  required  security.  It  may  be  seen  that  money  panics 
dries  up  all  the  well  springs  of  currency,  no  money  can  be 
drawn  from  them  to  transact  business  or  exchange  the  values 
of  the  country. 

What  is  wanted  is  a  well  spring  of  currency  that  cannot  be 
exhausted,  hoarded  nor  hid  and  always  open  for  business,  such 
would  be  the  banking  department  above  referred  to.  Its  cur- 
rency would  be  a  true  representative  of  value,  owned  and  loaned 
by  the  people,  to  the  Government,  to  the  States  and  individuals, 
upon  Government  and  State  bonds,  bullion  and  real  estate  at  a 
rate  of  interest  not  to  exceed  3$  per  annum. 

No  panic  could  possibly  arise  in  these  United  States  if  this 
department  was  in  operation.  Currency  issued  upon  a  gold  base 
or  gold  redemption  as  heretofore,  that  is  five  dollars  in  currency 
to  one  of  gold  is  unsound  in  principle  and  unsafe  in  practice. 
Mechanically  speaking,  it  is  a  weak  unsightly  structure,  an  in- 


IO4 

verted  pyramid  whose  apex  is  many  times  larger  than  its  base. 
It  never  has,  nor  never  can  weather  a  financial  gale. 

But  a  currency  based  upon  Government  and  State  bond  and 
bullion  at  90$  of  their  gold  market  value,  and  upon  real  estate 
at  not  more  than  one-half  of  its  taxable  value,  would  be  a  solid 
symmetrical  financial  structure  whose  top  is  many  times  less  than 
its  base,  and  never  can  be  shaken  by  financial  gales  or  destroyed 
by  financial  earthquakes.  Land  as  a  base  for  currency  issue 
would  be  superior  to  gold  in  the  following  particulars: 

1.  There  would  always  be  sufficient  lands  in  all  parts  of  the 
country  to  form  a  safe  basis  for  all  the  money  necessary  in  those 
parts.    With  gold  it  is  not  so,  it  is  too  limited  for  a  basis  even  in 
the  central  marts  where  it  accumulates  and  in  the  less  favored 
parts  there  is  none. 

2.  Land  cannot  be  stolen  or  lost,  gold  may  suffer  from  both 
causes. 

3.  Land,  although  used  as  a  basis  its  usefulness  is  not  destroy- 
ed, but  may  still  produce  an  income.    But  gold  when  used  for  a 
basis  is  useless  for  all  other  purposes,  as  unproductive  in  bank 
vaults  as  it  was  in  its  native  bed. 

Some  profess  to  believe  that  money  panics  are  caused  by  a 
natural  law,  the  same  as  day  and  night  are  caused  by  a  natural 
law,  should  this  be  so,  it  would  be  useless  for  man  to  attempt 
a  cure,  but  such  is  not  the  case.  Money  panics  are  financial 
paralysis  that  man  brings  upon  himself  as  man  is  the  author  of 
money  supply  and  money  deficiency,  so  is  he  the  author  of  money 
panics  by  his  unwise  currency  laws;  man  can  prevent  them  as 
soon  as  he  knows  how.  To  point  the  way  is  the  aim  of  these 
pages.  We  are  fully  convinced  this  is  not  a  tariff  panic,  nor  a 
silver  panic,  nor  an  over  production  panic,  but  a  money  panic 
that  causes  both  business  and  people  to  starve  and  suffer  for 
want  of  money  to  produce  and  exchange  the  necessaries  and 
comforts  of  life.  So  it  must  be  the  short  supply  of  or  its  deficient 
distribution,  or  both,  that  causes  money  panics  in  civilized  coun- 
tries, for  the  reason.  No  money  panic  ever  occurred  when  money 
was  ample  and  in  lively  circulation. 

Now  reader,  would  a  money  panic  be  possible  if  the  foregoing 
bill  was  enacted  and  the  banking  department  provided  for  therein 
organized  and  put  in  motion  ?  As  then  there  could  be  no  money 
deficiency  in  business  channels  for  every  citizen  with  the  re- 


quired  security  could  get  money  from  this  department,  even 
should  all  private  money  owners  refuse  loans. 

If  we  should  ask  why  so  many  solvent  banks  fail?  The 
answer  would  be,  "There  was  no  money  whereby  we  could  make 
our  assets  available."  Question  manufacturers  why  they  shut 
down,  they  answer,  "There  is  no  money  among  the  people  to 
buy  our  products,  neither  is  money  available  to  pay  our  help; 
could  we  have  sold  our  output  we  should  have  continued  running 
notwithstanding  tariff  reform  agitation."  Question  farmers  why 
they  let  their  mortgages  be  foreclosed,  they  will  answer:  "Money 
is  so  scarce  our  property  in  consequence  has  so  depreciated  in 
value  we  could  not  realize  enough  from  it  to  pay  interest,  so 
our  homes  had  to  go."  Thus  the  cry  is  for  money,  money,  money. 
Not  tariff,  not  the  repeal  of  the  Sherman  silver  law,  but  money. 
How  unnatural  that  over  "production  should  cause  starvation, 
nakedness  and  misery.  The  idea  alone  is  sufficient  to  defeat 
the  claim.  The  imperfect  laws  of  man  endeavoring  to  supply 
the  medium  for  the  distribution  of  life's  necessities  is  the  cause 
of  our  present  suffering,  not  the  bounties  of  providence.  Our 
medium  of  distribution  is  money,  if  that  is  not  obtainable  distri- 
bution and  production  are  both  checked  and  the  people  suffer. 
The  above  facts  should  settle  the  question,  what  causes  money 
panics?  I  repeat  a  short  supply  of  money  and  its  imperfect  dis- 
tribution is  the  true  cause. 

If  a  few  hundred  million  of  new  money  had  been  loaned  by  the 
Government  to  the  people  in  1889  and  after,  our  present  panic 
and  consequent  suffering  would  have  been  entirely  avoided  and 
the  great  loss  by  depreciation  of  property,  idle  labor,  idle  capital- 
railroads,  factories,  money,  etc. — would  have  been  saved  and  most 
business  failures  and  foreclosures  would  have  been  prevented,  and 
the  Government  instead  of  borrowing  millions  as  it  has  done, 
would  have  had  several  hundred  millions  loaned  out  drawing  in- 
u-ri-st,  thus  changing  from  a  large  reluctant  borrower,  to  one  of 
the  largest  money  lenders  of  the  world. 

Hunger  and  nakedness  is  not  caused  by  over-production  of 
farm  and  factory,  nor  money  panics,  by  tariff  manipulation,  as 
the  imports  upon  which  tariffs  are  levied  are  too  few  in  com- 
parison to  the  immense  productions  of  the  United  States,  to 
cause  a  money  panic,  or  even  a  business  depression.  The  fact 
is,  if  all  foreign  imports  were  excluded,  peace  and  plenty  would 
still  be  the  inheritance  of  our  people  to  enjoy,  provided,  an 


io6 

ample  supply  of  money  in  circulation  could  be  furnished  them 
for  home  exchange. 

As  long  as  people  have  money  to  buy  the  necessaries,  comforts 
and  luxuries  of  life  they  will  buy,  let  the  price  be  high  or  low, 
tariff  or  no  tariff. 

The  people's  necessities  are  as  great  now  as  at  any  former 
period,  yet  millions  cannot  buy  because  money  does  not  cir- 
culate among  them,  and  labor,  that  produces  all  wealth  cannot 
be  sold  for  money  only  to  a  limited  extent. 

If  the  people  had  continued  to  buy,  the  factories  would  con- 
tinue to  run.  What  is  required  to  restore  confidence,  prosperity 
and  plenty,  is  a  full  supply  of  public  money,  not  loaned  to  the 
banks  only,  but  to  the  Government,  to  the  States  and  to  all 
the  people  who  can  furnish  the  required  security.  Not  loaning 
for  30,  60,  90  days  or  6  months  to  be  promptly  returned,  as  the 
private  banks  now  loan,  but  loaned  to  run  as  long  as  the  bor- 
rower promptly  pays  the  interest,  which  would  enable  the  bor- 
rower to  arrange  his  business  before  returning  the  money. 

The  loaning,  the  security  to  be  given,  the  redeeming,  the  sav- 
ings, deposits  and  the  interest  demanded  should  all  be  done 
approximately  in  conformity  with  the  foregoing  bill,  administered 
as  there  proposed  by  a  Government  banking  department  as  in 
the  bill  provided. 

Everybody,  east,  west,  north  and  south  demands  <la  stable  cur- 
rency, made  of  gold,  silver  and  paper,  and  all  maintained  at  par, 
and  no  more  money  panics."  Under  the  bill  above  referred  to, 
all  may  enjoy  the  currency  demanded  and  escape  all  panics. 

The  above  way  of  stopping  a  panic  by  circulating  new  money 
is  not  without  precedent.  A  case  in  point:  Lord  John  Russel, 
it  is  said,  stopped  what  piomised  to  be  a  cruel  panic  in  1797  by 
directing  the  Bank  of  England  to  resume  its  discounts  which  it 
did,  and  by  so  doing  made  money  plentiful  and  cheap  in  all 
England.  The  notes  so  issued  were  made  a  legal  tender,  a  money 
without  metallic  base. 

Another  case,  in  1861  and  1862  the  United  States  was  con- 
fronted by  an  empty  treasury,  with  but  little  credit,  and  what 
proved  a  gigantic  civil  war.  Nearly  all  the  banks  had  suspended 
specie  payments,  gold  and  silver  coin  left  the  channels  of  trade, 
save  on  the  Pacific  Co  ist,  a  money  famine  was  beginning  to  be 
seriously  felt,  the  Government's  as  well  as  the  people's  necessities 
for  money  were  great  and  urgent,  no  money  was  available.  So 


Congress  wisely  concluded  to  avail  itself  of  its  constitutional 
right  and  make  its  own  money,  which  it  did  by  issuing  the 
greenback  and  other  treasury  notes,  and  as  by  magic  the  spindle 
and  loom,  the  forge  and  farm  echoed  again  the  music  of  industry. 

Over-production,  tariff,  tariff  agitation  or  silver  laws  did  not 
cause  the  threatened  panic  nor  prevent  it,  it  was  caused  by  an 
insufficient  money  in  circulation,  and  prevented  by  a  liberal  use 
of  new  money. 

The  above  shows  the  true  cause  of  money  panic  and  con- 
spicuous cases  where  panics  were  prevented  by  the  issue  of  new 
money  and  how  all  money  panics  may  in  future  be  prevented. 
Let  law-makers  heed  the  lesson. 

It  is  alleged  that  a  money  deficiency  is  not  the  cause  of  our 
present  trouble,  as  most  other  civilized  nations  are  similarly 
affected. 

The  truth  is,  all  civilized  nations  use  approximately  the  same 
system  of  private  money,  and  we  may  liken  them  to  a  row  of 
ten  pins.  The  first  one  hit  falls  against  its  fellow  and  its  fall 
knocks  the  next  and  so  on  until  all  are  effected. 

By  the  passage  of  the  bill  above  referred  to  the  United  States 
treasury  could  be  readily  relieved,  and  it  would  set  the  machinery 
of  industry  in  motion,  transforming  two  million  of  unemployed 
tc  thrifty  workers  and  producers,  thus  electrifying  into  healthy 
life  all  trades,  all  productions,  all  business  and  restore  the  country 
to  its  normal  prosperous  condition  and  the  people  to  peace  and 
plenty. 

This  system  being  constitutional  should  be  tried,  as  no  other 
money  system  has  ever  performed  what  this  promises.  All  others 
bring  business  depression  and  money  panic  upon  the  country 
every  few  years,  with  all  the  loss  and  bitter  fruits  which  panic 
yields. 


CHAPTER  XXVI. 


EX-SECRETARY   WINDOM'S   GREAT   SPEECH. 

Secretary  Windom  in  his  speech  just  before  he  was  stricken 
down  by  death  delivered  the  following  truthful  words,  viz:  "The 
ideal  financial  system  would  be  one  that  should  furnish  just 
enough  absolutely  sound  currency  to  meet  the  legitimate  wants 
of  trade,  and  have  enough  elasticity  of  volume  to  adjust  itself 
to  the  varying  necessities  of  the  people.  Could  such  a  medium 
be  secured,  the  grave  commercial  disaster  which  threaten  our 
future  might  be  averted.  These  disasters  always  come  when 
unusual  activity  in  business  causes  an  abnormal  demand  for 
money,  as  in  the  autumn  for  the  movement  of  our  immense 
crops.  There  will  always  be  great  danger  at  those  times  under 
any  cast  iron  system  of  currency  such  as  we  now  have." 

It  is  believed  that  anyone  who  has  looked  into  our  present 
American  money  system  must  agree  with  the  Secretary  that  it 
is  "a  cast  iron  currency  system"  well  qualified  to  produce  trouble. 

The  Secretary's  forebodings  of  future  evils  if  the  money  system 
outlined  by  him  was  not  secured,  has  been  upon  us  now  nearly 
eight  years,  because  it  was  not  secured,  and  the  affliction  has 
been  "grave  commercial  disasters"  indeed. 

It  must  be  observed  that  although  the  Secretary  so  clearly 
foresaw  the  then  future  financial  evils — which  are  now  upon  us — 
he  proposed  no  sure  plan  or  system  by  which  the  affliction  could 
be  averted.  The  banking  system  herein  presented  would  have 
supplied  a  currency  having  all  the  qualities  named  by  the  Secre- 
tary and  averted  the  evils  he  predicted.  It  would  not  be  a  "cast 
iron  money  system  such  as  we  now  have,"  but  it  would  be  a 
fountain  of  currency  that  never  could  be  dried  and  from  which 
all  could  draw  who  presented  the  required  security.  This 
system  would  "furnish  just  enough  absolutely  sound  currency  to 
meet  the  legitimate  wants  of  trade,"  neither  too  much  or  too 
little.  No  one  who  has  honestly  digested  this  system  will  dis- 
pute this  point.  As  in  this  country  there  is  Government  and 


log 

State  bonds  as  durable  and  of  as  good  credit  as  the  Governments 
that  issues  them,  and  bullion  and  real  estate  as  lasting  as  the 
solid  earth,  and  if  a  currency  were  loaned  upon  such  durable 
property  at  less  than  its  gold  coin  value,  it  would  be  an  "abso- 
lutely sound  currency." 

The  Secretary  wants  an  "elastic"  currency  as  well  as  an 
"adequate"  and  "sound"  one.  That  is,  he  wants  a  system  of 
currency  that  will  supply  to  the  American  industries  every 
autumn  when  their  immense  crops  are  being  harvested,  removed, 
measured  and  exchanged,  one  billion  or  so  of  money,  more 
than  is  required  for  business  purposes  during  spring  and  sum- 
mer months,  and  which  must  have  elasticity  sufficient  to  with- 
draw this  money  when  no  longer  required  in  trade  circles,  with- 
out rendering  its  withdrawal  a  disturbing  element.  The  system 
here  referred  to  provides  amply  for  every  requirement  of  the 
Secretary  for  an  honest,  ample  and  sound  currency. 

The  Secretary's  opportunities  for  acquiring  financial  informa- 
tion have  been  many  and  powerful  enough  to  convince  him  that 
America  requires  a  different  money  system  from  the  "cast  iron 
system  it  now  has." 

His  ideas  seem  clear  as  to  wrhat  kind  of  a  currency  is  required 
to  steer  clear  of  commercial  disasters,  but  his  ideas  were  not  so 
clear  as  to  a  money  system  that  would  produce  that  kind  of  a 
currency  or  no  doubt  he  would  have  given  it  to  the  world  when 
he  made  his  last  speech. 

However,  he  has  left  an  idea,  viz:  That  the  "bonded  debt  of  the 
Government  should  be  in  part  exchanged  for  an  inter-convert- 
able  bond  bearing  a  low  rate  of  interest,  and  always  inter-change- 
able at  the  will  of  the  people." 

The  "inter-changeable  bond"  we  favor  more  if  possible  than 
the  Secretary  for  effectually  supplying  a  people  with  just  enough 
money  and  we  have  doubly  provided  for  it  in  the  above  bill. 
It  has  been  incorporated  in  our  money  system  since  1874. 

l>ut  instead  of  part  of  the  debt  being  made  inter-changeable  as 
suggested  by  the  Secretary,  the  above  bill  makes  all  of  the  bonded 
debt  of  the  Government  inter-changeable  at  the  Government's 
banks  for  money,  the  same  as  that  part  of  the  bonded  debt  held 
by  National  Bank  owners  are  now  inter-changeable  at  the 
Treasury  for  money.  Again,  under  the  bill  referred  to  every 
citizen  wishing  to  deposit  money  in  the  Government  savings 
banks  can  do  so  and  receive  a  certificate  of  deposit,  the  money 


no 

returnable  to  the  depositor  on  demand  with  interest,  which 
makes  all  the  people's  deposits  inter-changeable  at  the  Govern- 
ment's banks  as  well  as  all  the  Government  bonded  debt,  and  no 
fear  of  these  banks  failing. 

If  the  bonds  and  certificates  referred  to  above  were  good  to 
use  inter-changeable  for  money  at  the  banks  to  prevent  "grave 
commercial  disaster"  in  America,  they  would  be  good  for  the 
industrial  development  of  all  civilized  nations  to  keep  business 
alive  and  prevent  money  panics. 

That  such  would  be  the  effects  of  using  inter-changeable  secu- 
rities and  certificates  of  deposits  upon  the  money  supply  of  all 
countries  that  adopt  this  system  no  one  will  deny  after  mentally 
digesting  the  method  of  their  operation,  as  either  could  be 
changed  into  money  at  the  Government  banks  upon  application, 
so  a  full  supply  of  money  being  always  available,  no  money 
panic  would  be  possible. 

There  is  but  slight  difference  in  the  principle  between  the 
inter-changeable  bond  recommended  by  the  Secretary  and  the 
one  provided  for  in  the  above  bill,  but  there  is  a  wide  difference 
between  the  limit  suggested  by  the  Secretary  and  the  limit  fixed 
in  the  bill.  Also  there  is  a  difference  between  the  way  suggested 
by  the  Secretary  for  getting  up  the  inter-changeable  bond,  and 
the  way  the  bill  provides  for  it. 

The  Secretary's  limit  is,  a  "part  of  the  Government  bonded 
debt"  only  should  be  used  for  the  inter-convertable  bond.  The 
bill,  as  may  be  observed,  makes  all  the  bonded  debt  of  the 
Government,  and  all  the  bonded  debts  of  the  States,  all  bullion 
and  all  real  estate,  whether  in  the  cities  or  in  the  country,  inter- 
changeable at  the  Government  banks  for  money,  upon  demand  of 
the  holder  of  anyone  of  the  above  named  securities. 

Getting  Up  the  Bond. 

The  Secretary  commences  his  task  by  changing  a  part  of  the 
Government  bonded  debt  into  inter-changeable  bonds  bearing  a 
"low  rate  of  interest."  The  Government  would  undoubtedly 
have  to  perform  the  labor  and  bear  the  expense  of  the  change, 
as  a  bondholder  would  not  readily  consent  to  change  his  bond 
bearing  a  high  rate  of  interest  for  one  drawing  a  low  rate  with- 
out compensation. 

Making  a  part  of  the  public  debt  inter-changeable  as  proposed 


Ill 

would  be  only  temporary  unless  Congress  should  declare  this 
part  of  the  debt  a  perpetual  one,  which  would  probably  be  un- 
constitutional. 

The  above  bill  if  enacted  would  mete  out  financial  equality  to 
ah  holders  of  Government  bonds,  which  is  not  the  case  now. 
Now  National  Bank  owners  are  the  only  beneficiaries  that  can 
use  the  Government  bond  inter-changeably  at  the  Treasury  for 
money. 

The  enactment  of  the  bill  would  empower  all  owners  of  Gov- 
ernment bonds  to  interchange  them  at  the  Government  banks 
for  money,  if  they  so  desired,  which  would  be  right,  as  justice 
and  common  honesty  demands  equal  financial  favor  be  accorded 
every  citizen,  not  bankers  only. 

One  of  the  advantages  of  making  real  estate  inter-changeable 
at  the  banks  for  money  would  be.  Government  could  pay  all  its 
debts  and  still  leave  enough  of  the  most  durable  property  known 
to  man,  to  secure  all  the  money  that  may  be  required.  With 
bonds  alone  made  inter-changeable  this  could  not  be  done. 

Another  advantage  in  making  bullion,  State  bonds  and  real 
estate,  inter-changeable  at  the  banks  for  money,  would  be,  the 
Government  would  realize  3^  per  annum  for  all  money  kept  in 
circulation  without  having  to  pay  interest  on  the  security  as  in 
the  case  of  the  Government  bond,  which  would  go  a  long  way 
towards  paying  its  debts  and  making  internal  improvements. 

(  )iu'  important  feature  of  the  money  question  which  seems  to 
have  been  overlooked  by  authors  of  other  money  systems,  is  the 
redemption  of  their  currencies  when  no  longer  wanted  in  pro- 
duction and  trade  circles.  It  is  apparent  that  under  all  money 
systems,  if  there  is  enough  money  distributed  to  supply  every 
demand  during  the  most  busy  part  of  the  year.  There  will  be 
too  much  at  other  times  and  where  no  provision  is  made  for  its 
redemption  on  demand  the  currency  may  depreciate  and  become 
the  battledore  and  skuttlecock  in  the  hands  of  brokers  and  bank 
syndicates,  such  as  combined  against  the  greenback  and  caused 
its  early  depreciation.  Xo  doubt  the  same  kind  of  combination 
would  have  ample  power  to  depreciate  any  over  issue  of  money, 
not  made  redeemable  upon  demand  of  the  holder. 

The  foregoing  bill  renders  depreciation  impossible,  as  all 
holders  of  the  banks'  money  can  carry  it  back  to  the  bank  and  get 
a  certificate  of  deposit  (an  inter-changeable  bond)  for  it  at  its 
face  value  and  payable  on  demand  in  legal  tender  public  money 


112 

with  an  interest.  Under  the  authority  of  the  bill,  the  banks  of 
the  department  will  redeem  all  the  money  they  loan  whether  it 
be  gold  coin,  silver  coin  or  legal  tender  paper. 

The  inter-changeable  securities  and  the  certificates  of  deposit 
above  mentioned  will  give  the  currency  all  the  elasticity  that  pro- 
duction and  trade  could  possibly  require.  As  if  they  don't  have 
enough  money,  they  can  take  their  bonds,  bullion  and  real  estate 
to  the  Government's  banks  and  get  more,  (as  these  banfcs  cannot 
refuse  loans  when  legitimate  demand  is  made  upon  them  for 
money,  as  private  banks  frequently  do)  or  change  their  certi- 
ficates into  money. 

No  objection  can  be  honestly  urged  against  the  quality  of  this 
public  money,  as  not  one  dollar — whether  it  be  gold,  silver  or 
paper — could  get  into  circulation  only  by  being  secured  by  the 
most  durable  kind  of  property  to  insure  its  final  redemption. 

This  money  could  no  more  be  depreciated,  than  could  a  private 
note  that  was  secured  by  mortgage  upon  durable  property  worth 
in  gold  coin,  more  than  the  face  value  of  the  note.  Thus  it  may 
be  seen,  this  bill  provides  amply  for  the  kind  of  currency  demand- 
ed by  Ex-Secretary  Windom.  That  is,  it  is  "sound  in  quality, 
adequate  in  quantity  and  elastic  of  volume."  This  money  system 
fills  every  demand. 

What  shall  I  say  more?  The  world  demands  a  gold  standard 
of  value.  This  system  is  arranged  to  a  United  States  gold  coin 
standard,  and  every  transaction  under  it  is  regulated  to  that 
standard,  every  dollar  of  its  money  measures  of  value  authorized 
to  be  issued  or  coined  under  this  bill,  every  certificate  of  deposit, 
every  mortgage  and  bond  given  to  secure  this  money,  is  rated, 
measured  and  valued  by  this  gold  standard. 

There  are  three  fundamental,  live  and  tried  principles,  con- 
tained in  the  above  bill;  first,  the  making  enough  money  for 
domestic  use  out  of  gold,  silver  and  paper;  second,  distributing 
it;  third,  redeeming  it  when  no  longer  wanted  in  the  channels 
of  trade.  The  making,  distributing  and  redeeming  to  be  done 
In  pursuance  of  the  enacted  bill  by  a  Government  banking  depart- 
ment. This  right  not  to  be  longer  delegated  to  corporate  mono- 
poly, or  by  proxy  to  individuals.  The  above  three  named  princi- 
ples have  always  done  their  duty  singly  when  called  upon,  but 
being  limited  by  statutes  and  only  used  singly  under  special  laws, 
that  so  limit  and  control  their  usefulness,  they  fail  to  bless  man- 


kind  as  they  would  do  if  they  were  allowed  to  work  in  continuous 
combination  and  for  general  good,  as  this  bill  provides,  and 
the  natural  law,  "demand  for  use,"  being  the  only  limit  of  cur- 
rency volume. 

As  money  is  the  life-blood  of  business  the  moving  force  under 
our  civilization  of  all  labor,  all  enterprise,  all  productive  industry 
and  to  make  business  healthy  and  material  progress  certain,  it 
behoves  all  Governments  whose  business  is  to  "coin  money 
regulate  value  thereof"  to  provide  and  circulate  it  abundantly, 
to  fill  every  legitimate  demand,  as  money  is  wanted  for  schools 
and  churches,  for  purchasing  food,  clothing  and  habitations,  etc., 
in  fact,  all  things  can  be  done  with  money,  without  it  but  little. 
"Money  answereth  all  things."  Money  is  the  tool  in  the  hands 
of  labor  that  produces  all  wealth,  all  life's  necessities  and  luxuries. 
It  is  money,  money,  money,  the  law  compels  all  to  pay  and  all  to 
receive. 

What  I  have  written  in  support  of  the  above  bill  being  true, 
how  important  it  is  that  the  supreme  authority  of  our  country 
should  make  and  distribute  money  sufficient  for  all  business;  to 
enable  its  people  to  produce  values,  and  to  measure  and  ex- 
change the  values  they  produce;  neither  can  be  done  without 
money  under  our  customs  and  laws. 

If  the  people  have  the  right  through  their  Government  to 
delegate  this  constitutional  power  to  individuals  or  corporations 
to  make  and  distribute  currency,  they  certainly  hold  the  right 
to  perform  this  duty  for  themselves,  and  this  bill  provides  the 
way.  Moreover,  how  much  safer  would  be  the  whole  people  to 
issue  and  circulate  money,  and  receive  money  at  their  banks  on 
deposit,  than  a  few  individuals  of  that  people,  as  all  money  would 
be  then  promptly  redeemed,  and  all  deposits  paid  on  demand, 
no  broken  banks. 

This  is  one  of  the  improvements  aimed  at  in  this  bill,  viz: 
Taking  from  all  corporations ,  and  individuals  the  delegated 
power  of  issuing  currency  and  restore  it  to  the  people  to  whom 
it  belongs.  The  making  and  distributing  money  is  one  of  the 
most  important  duties  confided  to  Congress  by  the  Constitution, 
great  suffering — physical,  mental  and  material — are  endured 
by  the  people  at  all  times  if  their  Government  fails  in  its  duty 
of  both  coining  and  distributing  sufficient  money  for  its  people's 
use.  Creating  the  money  is  not  sufficient,  it  must  be  distributed 


before  it  becomes  useful  to  man.  The  bill  so  often  mentioned 
above  provides  amply  and  clearly  for  the  distribution  of  public 
money  and  thus  keep  business  healthy  even  should  all  private 
banks  and  other  lenders  of  private  money  refuse  loans,  which 
all  must  admit,  would  be  a  great  improvement  over  all  our 
former  money  systems. 

Shall  we  not  improve  our  currency?  Must  everything  else 
be  improved  except  the  coining  and  circulating  of  our  currency 
that  we  are  depending  upon  to  energize  labor,  for  material  de- 
velopment, individual  happiness  and  national  prosperity?  Not 
improve  the  currencies  that  have  cursed  mankind  for  ages  with 
their  imperfect  issues,  depreciations  and  resumption,  when  the 
happiness  of  the  civilized  world  are  depending  upon  it  ? 

Man  has  enlarged  his  dominion  over  matter  by  various  dis- 
coveries and  improvement,  in  the  present  century,  yet,  strange  to 
say,  no  improvement  has  been  made  in  the  issue  and  distribu- 
tion of  currency,  for  ages.  Without  the  mutilated  greenback  of 
America,  or  its  illegal  tender,  National  Bank  bills  could  be 
called  an  improvement,  which  may  be  doubted  as  they  are  only 
private  money. 

Improvement  and  progress  means  life,  stagnation,  death. 
Snail  we  consent  to  remain  in  this  stagnant  pool  of  financial  cor- 
ruption that  has  remained  unmoved  for  ages  and  cursed  the 
world  with  its  miasmatic  effluvia  of  "money  panics,"  business 
depression,  suffering  and  misery  beyond  computing?  Verily  no, 
as  "money  panic"  and  all  evils  arising  from  money  panic  would 
be  effectually  prevented  in  all  countries  by  the  passage  of  this 
bill  into  a  law.  This  cannot  be  refuted,  nor  will  it  be  disputed, 
by  anyone  acquainted  with  the  merits  of  this  bill. 

Nations  are  said  to  flourish  when  agriculture,  manufacture, 
mining  and  commerce  flourish,  when  city  improvements  and 
railroad  construction  flourish,  when  willing  laborers  are  abun- 
dant and  work  for  all  to  do,  when  trade  is  lively  and  profitable 
and  general  prosperity  is  enjoyed  by  all  its  people;  then  a 
nation  flourishes  and  rapidly  increases  its  wealth  and  its  people 
enjoy  the  comforts  of  life.  When  there  is  remunerative  em- 
ployment for  all  willing  workers  there  will  be  bread,  clothing, 
earthly  comforts  and  an  increase  of  national  and  individual 
wealth.  It  is  a  great  blessing  to  be  able  at  all  times  to  buy  the 
comforts  of  life  by  respectable  employment.  Employment  feeds, 


clothes  and  instructs.  Ample  and  remunerative  employment 
produces,  in  all  countries,  prosperity,  content  and  cheerfulness. 

It  appears,  from  the  above  facts,  that  labor  intelligently 
applied  produces  all  of  the  necessities  and  luxuries  of  life.  Let 
me  ask  then,  why  cannot  all  industrious  and  enterprising  peo- 
ple enjoy  the  comforts  of  life,  flourish  and  be  content,  cheerful 
and  happy?  I  answer,  under  our  civilization,  the  foundation  of 
all  prosperity,  the  life-blood  of  business  and  production  is  money. 
Money  is  first,  and  labor  that  produces  all  wealth  is  second. 
It  is  money,  money,  money,  the  law  and  custom  compels  all 
to  pay  and  all  to  receive,  and  if  any  nation  have  a  full  supply 
it  is  not  properly  distributed;  (Can  this  be  disputed?)  consequent- 
ly struggle  and  suffering  for  a  mere  subsistence  everywhere 
abound. 

No  nation  can  be  said  to  be  fully  supplied  with  money,  when 
money  invested  in  the  industries,  agriculture,  manufacture,  min- 
ing, etc.,  yields  less  than  3  per  cent,  per  annum  including  money, 
while  money  alone  at  interest  yields  over  7  per  cent.  When 
such  a  state*  of  things  exist  the  industries  are  not  fully  sup- 
plied with  money,  are  hampered  and  working  to  a  disadvan- 
tage, it  checks  business  and  production.  No  prudent  man  will 
borrow  money  to  invest  in  a  business  that  yields  him  less  than 
one-half  of  what  he  promises  to  pay  for  its  use.  The  above 
percentages  were  taken  from  American  statistics  of  some  years 
ago. 

I  see,  by  the  late  census,  that  the  industries  of  Iowa  pay  from 
i  ]HT  cent,  to  20  per  cent,  per  annum  for  the  use  of  money,  and 
Alabama  from  i  per  cent,  to  40  per  cent.  What  an  outrage, 
and  what  an  unsatisfactory  state  of  things  that  must  be  where 
a  man  in  easy  circumstances  can  get  money  for  i  per  cent.,  and 
a  man  "hard  up" — though  a  producer — has  to  pay  20  per  cent. 
Loaners  of  money  are  not  to  blame,  as  they  have  as  much  right 
to  get  a  big  price  for  their  money  as  I  have  for  my  sugar.  The 
fault  is  with  the  Governments  for  permitting  its  people  to  suffer 
such  exactions,  when  the  exercise  of  its  constitutional  duties 
would  relieve  them.  We  presume  that  America  is  not  the  only 
country  that  is  crippled  in  its  business  by  a  short  supply  of  money 
or  an  imperfect  distribution  of  it,  which  renders  them  only  com- 
paratively prosperous,  when  they  are  said  to  be  flourishing. 

All  civilized  countries  demand  both  by  law  and  custom  that 


n6 

all  debts,  tariffs  and  taxes  be  paid  in  money;  money  is  required 
for  all  enterprises  and  all  labor;  no  agriculture,  no  manufactur- 
ing, no  flourishing  trade,  no  employment,  no  civilizing  influ- 
ence, schools,  churches,  railroads,  telegraphs,  etc.,  can  be  enjoy- 
ed without  money. 

This  shows  how  important  is  money,  and  how  unwise  and 
unjust  it  is  to  leave  the  distribution  of  money  altogether  in 
private  hands,  seeing  the  evil  that  arises  from  it;  and  the  mak- 
ing of  the  money  is  a  supreme  Government  duty.  Why  should 
not  the  Government  distribute  it  upon  security  on  demand  as 
well  as  to  make  it?  By  her  not  doing  so,  financial  earthquakes 
periodically  shake  the  foundation  of  business  and  production 
throughout  the  civilized  world,  causing  loss  and  suffering  be- 
yond computing. 

This  ought  not  to  be,  and  such  a  thing  could  not  exist  if  the 
Government  banking  bill  here  advocated  was  in  working  order 
there. 

So,  notwithstanding  the  bright  looking  picture  of  national 
and  individual  prosperity  and  the  apparent  ease  'by  which  it 
can  be  attained  by  enterprise  and  labor,  none  of  it  can  be  ac- 
complished or  enjoyed  without  money. 

So  money  should  be  one  of  the  first  things  to  be  supplied  by 
a  Government  to  its  people  if  it  expects  them  to  produce  wealth 
by  their  labor  and  to  measure  and  exchange  that  wealth  after 
it  is  produced;  or,  if  internal  development  is  desired,  money  is 
the  first  requisite  and  the  most  efficient  tool. 

Yet  under  our  civilized,  inefficient,  tyrannical,  Shylock,  private, 
iron-clad  money  system,  individuals — not  the  Government —  are 
expected  to  supply  the  money,  the  tool  to  enable  the  people  to 
create  wealth  and  national  prosperity,  and  if  they  don't  supply 
it  nothing  will  be  done.  Nothing  can  be  done  without  money, 
and  it  is  said  everything  can  be  done  with  it  except  to  make  an 
honest  man.  Give  the  people  a  currency  sound  in  quality, 
with  enough  elasticity  of  volume  to  adjust  itself  to  the  varying 
necessities  of  the  people,  and  at  a  rate  of  interest  approximating 
the  net  income  of  the  industries.  Then  every  industry  will  be 
quickened,  and  all  the  people  will  feel  the  impulse,  a  new 
awakening  to  a  permanent  prosperity  never  before  enjoyed  by 
any  people,  as  no  people  ever  enjoyed  such  a  currency. 


Yet  the  above  bill  would  produce  just  that  kind  of  a  currency 
for  the  people,  and  would  apply  with  great  force  to  large  nations. 
It  would  prevent  every  evil  arising  from  the  present  cast-iron 
money  systems  of  the  world. 


CHAPTER  XXVII. 


TRADITION  AGAINST  PROGRESS. 

What  is  money?  Every  inch  of  the  way  in  real  progress  for 
the  human  race  in  wealth,  civilization,  Government  and  religion 
has  been  fought  with  this  giant  monster,  tradition. 

There  is  but  little  more  truth  in  our  traditional  ideas  as  to 
what  is  money,  than  there  was  in  the  traditional  idea  that  the 
earth  was  flat  in  the  days  of  Columbus. 

It  is  hard  to  root  out  of  men's  minds  the  tradition  that  good 
National  money  cannot  exist  without  intrinsic  value.  "That 
coined  gold  and  silver  only  are  money."  ''Nothing  but  gold  and 
silver  can  be  made  into  money."  "To  be  good  money  every 
dollar  must  contain  100  cents  worth  of  metal." 

The  above  are  some  of  our  traditional  ideas  in  which  there  is 
no  truth.  The  material  of  money  may  have  intrinsic  value,  and 
it  may  be  made  without  and  yet  be  just  as  good  money.  Legal 
value  is  the  only  value  money  requires.  If  it  is  used  or  valued 
on  account  of  its  actual  value  it  is  bullion  not  money. 

Gold,  silver  and  paper  that  bears  about  the  sovereign  stamp 
is  not  money.  They  are  only  the  material,  the  instrument  or 
agent  of  the  sovereign  to  represent  its  power  upon  convenient 
material  for  measuring  values. 

So  we  must  see  that  sovereign  power  is  money,  not  gold  or 
silver,  neither  will  they  pass  as  money  without  the  sovereign 
stamp. 

The  sovereign  power  of  a  country  only  can  make  money.  It 
can  stamp  its  authority  upon  any  convenient  material  and  it 
will  satisfy  debts,  and  measure  values.  Our  revenue  and  postage 
stamps  are  worth  their  face  value  in  U.  S.  gold  coin,  yet  intrinsic- 
ally they  are  worthless.  SOVEREIGN  POWER  ALONE  GIVES  THEM 
VALUE. 

The  Hon.  A.  M.  Comstock  thus  discourses  upon  "What  is 
money?"  Not  what  does  Webster  or  Worcester  define  it  to  be, 


TT9 

but  what  is  money  by  its  constitution  and  character?  Defini- 
tions become  important  to  a  full  understanding  of  this  subject. 
We  will  therefore  exhibit  the  character  and  constitution  of 
money  and  show  what  it  is  not,  and  leave  the  reader  to  say  what 
it  is. 

"First,  it  is  not  gold  metal,  nor  its  value,  for  258  grains  of  gold. 
Troy  weight,  9-10  fine,  are  gold  metal  and  are  of  the  value  of  an 
eagle,  $10;  yet  they  are  not  money,  and  you  will  not  receive 
them  in  payment  for  $10  due,  because  they  are  not  money.  I 
have  them  coined  into  an  eagle;  again  I  tender  them  in  pay- 
ment, and  you  MUST  cancel  your  debt,  for  money  speaks  in  the 
language  of  sovereignty,  and  there  is  no  appeal. 

''They  are  money  now,  so-called;  therefore,  money  acts  with 
sovereign  power.  The  metal  and  its  value  were  there  before,  but 
now  there  is  power.  Therefore,  money  is  sovereign  power.  The 
grains  of  gold  and  their  value  are  identical  as  before;  the  power 
alone  has  become  added. 

"You  tell  me  the  words  and  figures  on  the  eagle  give  it  the 
character  of  money.  Not  so.  Examine  them.  On  one  side  we 
find  an  eagle  with  a  scroll  over  its  head  bearing  the  words  "In 
God  we  Trust."  That  refers  to  a  sovereign  God.  Around  the 
margin  we  find  the  words  "United  States  of  America,"  the  name 
of  another  sovereign.  On  the  opposite  side  we  find  the  head  of 
the  Goddess  of  Liberty,  the  name  of  "Liberty"  across  her  brow 
—not  a  god,  but  a  goddess.  And  the  eagle  is  the  king  of  birds— 
another  sovereign.  All  are  emblems  of  sovereign  power  raised 
in  the  gold  itself;  nothing  more.  Underneath  the  eagle  is  "Ten 
D" — $10 — the  measure  of  the  power  which  acts  through  that  in- 
strument. No  more  gold  and  no  more  value  has  been  added, 
yet  it  now  possesses  money  power,  which  is  seen  to  be  sovereign 
power;  therefore,  money  is  not  matter  nor  value,  but  power — 
sovereign  power.  Again,  the  new  and  perfect  eagle  is  taken 
to  England  or  any  foreign  country.  It  is  all  there — the  gold, 
value  and  emblems,  but  the  money  has  stopped  in  the  United 
States.  It  is  no  longer  money;  it  ceased  to  be  money  when  it 
crossed  the  boundary  line  between  the  countries.  Why?  Be- 
cause the  sovereignty  of  the  United  States  is  bounded  by  that 
line;  money,  being  a  part  of  that  sovereignty,  stopped  there 
also.  Therefore,  money  is  power — sovereign  power;  not  matter, 
of  silver,  gold  or  paper.  It  is  also  National,  not  International, 
or  logic  has  lost  its  reason." 


CHAPTER  XXVIII. 


CHEAP  MONEY. 

We  have  observed  that  most  writers  on  currency  use  the  above 
appellation  when  they  wish  to  slur  and  disparage  all  kinds  of 
currency  not  made  of  gold  metal,  or  when  any  other  method 
of  distribution  of  currency  is  proposed  than  agencies  like  the 
National  Banks,  that  is,  currency  circulation  only  by  private 
parties. 

For  the  Government  to  distribute  currency  direct  to  those  wish- 
ing to  use  it,  is,  in  their  estimation  an  outrageous  proposition,  a 
thing  not  to  be  thought  of  for  a  moment,  and  they  seize  upon 
any  historical  fact,  where  trouble  has  originated  in  attempts  to 
improve  the  currency  in  quantity,  or  the  methods  of  its  dis- 
tribution. 

The  trouble  arising  from  the  blunders  of  law-makers  and  dis- 
honest or  incapable  agents  are  all  charged  against  cheap  money 
systems  and  they  endeavor  to  show  their  failure  with  an  apparent 
relish. 

A  writer  in  the  Century  magazine  for  April,  1891,  (striking 
at  Senator  Stanford's  land  loan  scheme)  has  carried  his  zeal  so 
far  as  to  show  up  the  failure  of  an  attempt  to  start  a  private 
corporate  "Land  Bank"  in  England  in  1696.  And  he  seems  to 
infer  that  if  a  private  land  bank  failed  to  incorporate  for  want  of 
means  200  years  ago,  Stanford's  Government  land  loan  scheme, 
must  also  fail.  If  that  is  not  the  logic  of  the  gentleman's  reason- 
ing we  fail  to  see  his  point.  How  the  fact  that  a  private  land 
bank  failed  to  incorporate  for  want  of  means  in  1696,  can  hold  as 
an  argument  against  a  Government  land  bank  with  ample  means 
in  1891,  he  fails  to  inform  his  readers,  or  how  such  a  failure  can 
hold  as  an  argument  against  an  attempt  to  start  a  land  bank 
any  more  than  it  would  against  the  attempt  to  start  a  gold  bank, 
or  a  silver  bank  and  failing,  many  such  attempts  have  failed, 
and  hundreds  of  so-called  gold  banks  have  failed  after  they  did 


121 

start  and  brought  distress  upon  thousands,  so  if  this  argument  is 
good  against  private  land  banks,  it  should  be  good  against  all 
private  banks  for  the  same  reasons. 

What  this  writer  means  by  "cheap  money"  we  take  to  be  any 
money  whose  actual  value,  is  less  than  its  face  value.  The  Ameri- 
can gold  dollar  is  five  cents  too  cheap,  its  silver  dollar  44  cents, 
too  cheap,  and  the  greenback  dollar  one  hundred  cents  too  cheap- 
according  to  this  magazine  writer's  logic,  and  as  there  is  no- 
money  in  America  excepting  the  three  kinds  named  above,  all  oi 
America's  money  is  "cheap  money"  in  his  estimation. 

Notwithstanding  his  argument  the  fact  remains  that  the 
cheapest  money — the  greenback — is  the  most  valuable  for  busi- 
ness. President  Grant  said  the  ''greenback  is  the  best  money  ever 
devised." 

The  bulky  nature  of  all  coins  is  so  objectionable  they  are  being 
deposited  with  the  Government  and  packed  away  by  it,  and  a 
paper  certificate  taken  to  use  as  money  in  their  stead. 

The  greenback  is  never  so  deposited,  hence  it  is  more  accept- 
able as  a  business  tool  than  the  coins — the  cheap  money  preferred 
to  the  dear.  This  same  writer  in  the  same  magazine  for  May  of 
the  same  year,  cites  Rhode  Island's  failure  as  an  argument  against 
all  attempts  to  make  a  cheap  money  profitable  bottomed  upon 
land  values.  He  says,  "At  the  close  of  the  revolutionary  war, 
the  people  found  themselves  in  extreme  poverty,  and  in  their 
distress  the  people  turned  to  paper  money  for  relief  and  the 
general  assembly  in  May.  1778,  passed  a  law  establishing  a  paper 
money  bank  of  one  hundred  thousand  dollars,  the  money  was  to 
be  loaned  to  the  people  upon  the  pledge  of  real  estate  for  double 
the  amount  desired  and  must  be  paid  into  the  Treasury  at  the 
end  of  14  years.  Many  made  haste  to  avail  themselves  of  their 
good  fortune,  and  mortgaged  fields  strewn  thick  with  stones 
and  covered  with  cedars  and  stunted  pines  for  sums  such  as 
could  not  have  been  obtained  for  the  richest  pastures.  The 
depreciation  of  the  new  money  began  literally  with  its  issue." 

The  Act  which  effected  its  repeal  fixed  the  value  of  the  paper 
bills  at  fifteen  to  one,  this  was  the  end.  The  same  writer  con- 
tinues, "Every  cheap  money  experiment  that  has  ever  been  made 
has  resulted  in  precisely  the  same  demonstration,  and  the  same 
fate  awaits  all  those  of  the  future."  This  last  sentence  seems 
rather  too  prophetic  for  one  to  utter  not  properly  endowed. 

One  would  think  that  a  mere  reference  to  our  greenback  would 


122 

be  sufficient  proof  to  show  that  the  writer  referred  to  had  not 
fully  digested  his  emphatic  declaration  that  "every  cheap  money 
experiment  that  had  ever  been  made  has  resulted  in  precisely  the 
same  demonstration"  as  the  Rhode  Island  experiment. 

The  greenback  surely  is  not  such  a  failure  and  its  present 
staging  indicates  anyt— *ig  but  failure.  By  means  of  the  green- 
back our  civil  war  was  fought  to  a  finish,  and  for  17  years  it  con- 
stituted our  only  measure  of  value  and  our  only  money  tool,  save 
on  the  Pacific  Coast,  and  the  country  flourished  under  this  "cheap 
money"  measure  as  never  before. 

There  are  several  other  cases  on  record  of  cheap  money  issues 
which  were  not  failures.  We  may  refer  to  them  further  along. 

The  Rhode  Island  "cheap  money"  scheme  failed  first  because 
tne  State  as  well  as  its  people  were  poor  and  bankrupt,  which 
rendered  its  credit  too  shaky  to  have  its  notes  accepted  in  the 
•community  as  money.  The  same  effect  would  follow  any 
bankrupt.  Second — The  act  required  that  double  the  amount  of 
property  should  be  given  as  security  for  the  sum  loaned,  but 
by  fraud,  the  amount  loaned  was  more  than  the  value  of  the 
security.  Third — Its  Supreme  Court  had  unanimously  declared 
the  issue  unconstitutional. 

What  other  result  than  depreciation  and  failure  should  have 
been  expected  for  a  currency  issued  as  the  "cheap  money"  of 
Rhode  Island  was. 

The  people  were  few  in  extreme  poverty.  It  was  not  a  respon- 
sible nation,  only  a  small  part  of  a  nation.  It  had  no  right  to 
make  money  of  either  metal  or  paper.  Its  court  had  declared  the 
Bank  Act  unconstitutional.  So  looking  at  it  from  any  standpoint, 
what  happened  to  the  Rhode  Island  currency  was  just  what 
should  have  been  expected  to  happen. 

So  the  magazine  writer's  application,  does  not  prove  that  im- 
proved real  estate  at  one-half  of  its  taxable  value  is  not  good 
security  for  money  either  from  a  Government  or  private  bank, 
whether  the  money  secured  be  gold  or  greenbacks,  dear  money 
or  cheap. 

If  any  further  proof  is  wanted  that  Congress  has  created  and 
can  create  value  by  law  and  make  money  out  of  other  material 
than  gold  and  silver,  and  make  it  just  as  good  for  measuring 
values  as  gold  coin,  I  will  refer  the  reader  to  the  first  $60,000,000 
of  greenbacks  issued  after  the  commencement  of  the  rebellion 
;and  made  "receivable  in  payment  of  duties  on  imports,  a  lawful 


123 

money,  and  a  legal  tender."  This  $60,000,000  was  received  at 
the  United  States  Treasury  on  a  par  with  gold,  when  gold  was 
selling  at  $2.85  in  the  depreciated  greenback. 

Congress  made  this  $60,000,000  of  ''cheap  money"  as  good  as 
gold  for  all  domestic  money  purposes  both  for  the  Government 
and  the  people's  use,  and  that  fact  caused  the  bank  associations 
of  Boston,  New  York  and  Philadelphia,  to  send  a  committee  to 
beseige  Congress  and  the  Government  and  by  arguments  and 
threats  intimidate  Congress  from  making  any  more  such  good 
money  out  of  such  cheap  material,  if  it  did,  they  would  "pack 
up  their  gold  and  leave  the  country."  History  informs  us  that 
Congress  complied  with  their  demands  by  making  the  after  issue 
of  greenbacks  only  a  partial  legal  tender.  That  is,  they  demand- 
ed that  the  "interest  on  the  public  debt"  and  "duties  on  imports 
be  made  payable  in  gold  coin"  and  they  were  so  made,  which 
opened  a  market  for  their  gold  which  nothing  else  was  allowed  to 
fill,  and  it  compelled  the  Government  to  shin  through  Wall 
street  and  among  the  associated  banks  to  obtain  the  gold  for  its 
interest  payments,  and  forced  every  importer  to  do  the  same 
thing  to  secure  the  gold  for  their  import  payments. 

Congress  having  made  gold  a  special  favorite  and  compelled 
the  Government  to  repudiate  its  own  notes,  caused  the  green- 
back to  depreciate  or  more  truly  caused  gold  to  advance  in  price, 
by  making  a  demand  for  it  that  nothing  else  would  fill. 

Gold  alone  advanced,  as  the  products  of  the  farm  and  factory 
did  not  advance  in  price  measured  by  greenbacks  more  than 
should  be  expected  in  war  times.  Gold  alone  advanced,  being 
cornered  and  manipulated  by  the  gold  bugs  and  bank  associ- 
ations. 

No  gold  being  circulated  save  for  the  two  purposes  above 
named  the  greenback  became  the  standard  of  value  in  all  trade 
and  productive  business. 

Jefferson  tells  us  the  Colony  of  Virginia  issued  a  paper  cur- 
rency not  redeemable  in  coin  "that  never  depreciated  a  farthing" 
during  its  existence.  Dr.  Franklin  makes  a  similar  statement 
respecting  an  issue  of  a  paper  currency  by  the  Colony  of  Penn- 
sylvania. 

When  the  Act  of  Congress  of  October  12,  1837,  authorizing 
an  issue  of  treasury  notes  was  pending  Mr.  Calhoun  advocated 
the  measure  in  strong  terms.  The  following  is  an  extract  from 
a  speech  delivered  by  him,  September  iQth,  prior  to  the  passage 


124 

of  the  bill.  He  said:  "It  may  throw  some  light  on  this  subject 
to  state  that  North  Carolina,  just  after  the  revolution,  issued  a 
large  amount  of  paper,  which  was  made  receivable  in  dues  to 
her.  It  was  also  made  a  legal  tender,  but  which,  of  course,  was 
not  obligatory  after  the  adoption  of  the  Federal  Constitution. 
A  large  amount,  say  between  four  and  five  hundred  thousand 
dollars,  remained  in  circulation  after  that  period,  and  continued 
to  circulate,  for  more  than  twenty  years,  at  par  with  gold  and 
silver  during  the  whole  time,  with  no  other  advantage  than 
being  received  in  the  revenues  of  the  State,  which  was  much 
less  than  one  hundred  thousand  dollars  per  annum." 

It  is  evident  the  magazine  writer  referred  to  above  has  taken 
a  superficial  view  of  the  cheap  money  question  and  only  a  one- 
sided view  at  that,  or  he  would  not  so  strenuously  insist  that  all 
issues  of  paper  money  must  have  a  coin  redemption  to  prevent 
depreciation. 

He  should  have  discovered  that  money  has  had,  and  may  have 
acceptable  redemption  in  other  values  than  coin.  The  Pennsyl- 
vania, Virginia,  and  North  Carolina  issues  above  referred  to,  were 
redeemed  by  being  received  as  taxes  in  the  revenues  of  the  Colon- 
ists. The  $60,000,000  greenbacks  above  referred  to  was  redeemed 
by  being  received  into  the  Treasury  of  the  Government  for  duties 
on  imports  and  for  other  dues  the  same  as  gold  and  silver  coin 
was  received.  Neither  had  gold  or  silver  behind  them;  neither 
required  a  coin  redemption.  Neither  depreciated  a  farthing. 
One  billion  or  so  of  American  greenbacks  and  other  treasury 
notes  were  acceptably  redeemed  by  Government  bonds.  The 
National  Bank  note  is  redeemable  in  Government  bonds,  green- 
backs or  coin,  our  post  office  stamps,  that  are  of  such  great  value 
to  the  American  people,  are  paper  obligations  of  the  Govern- 
ment, worth  their  face  value  in  gold  coin,  and  are  redeemable 
by  Government  service. 

There  are  scores  of  millions  of  gold  now  in  the  hands  of  the 
people,  whose  owners  would  think  themselves  fortunate,  if  they 
could  have  it  redeemed  by  American  Government  bonds,  al- 
though the  bonds  are  only  paper  and  value  is  given  to  them  by 
law,  yet  the  owners  of  gold  prefer  the  bond  as  being  more  valu- 
able to  them  than  their  gold. 

The  reader  may  see  from  the  above  citations  that  both  cheap 
money  and  dear  have  been  and  now  are  acceptably  redeemed  in 
other  values  than  gold  coin. 


125 

How  will  the  Century  writer,  and  others  of  like  faith,  reconcile 
these  facts  to  his  emphatic  declaration  that  "all  issues  of  cheap 
money  must  depreciate  if  not  redeemable  on  demand  in  coin." 

The  greenback  is  a  Government  paper  money,  as  valuable  as 
gold  coin  for  all  domestic  money  purposes,  and  was  redeemed  by 
a  Government  bond — another  paper  obligation  more  valuable 
than  coin.  Both  greenbacks  and  bonds  were  made  valuable  by 
tne  power  of  civilized  law.  Yet  some  tell  us,  there  are  no  values 
created  by  law. 

There  is  one  phase  of  the  cheap  money  question  which  never 
seems  to  have  been  noticed  by  its  enemies,  viz:  The  positive 
necessity  at  times  of  nations  having  some  money,  and  cheap 
material  was  the  only  material  available  to  make  it  of.  By  barter 
alone  could  exchanges  be  made,  and  that  was  cumbersome  and 
time-wasting. 

In  these  days  when  the  fiat  of  money  can  be  stamped  upon 
any  acceptable  and  convenient  material  by  authority  of  sovereign 
law.  neither  individuals  nor  nations,  are  willing  to  submit  to  the 
extra  labor  barter  requires  in  the  absences  of  money.  A  perti- 
nent question  seems  to  be.  What  should  a  nation  do,  when  it 
has  no  money  nor  bullion  to  make  it  of,  neither  can  it  borrow, 
and  its  money  wants  are  large  and  urgent?  The  answer  is  coin 
its  credit  and  available  wealth  into  money,  that  was  practical  and 
reasonable,  and  that  was  done  by  intelligent,  practical,  live  men 
generations  ago.  The  Colony  of  Massachusetts  in  1695  and 
1745,  having  neither  money  nor  bullion,  coined  its  credit  into 
money,  and  that  paper  money  constituted  its  measures  of  value 
for  scores  of  years.  Pennsylvania,  Virginia  and  North  Carolina 
above  referred  to  coined  their  credit  into  money  and  it  fully  filled 
the  expectation  of  its  friends.  The  continental  currency  was 
issued  for  the  same  reason,  the  money  wants  of  the  Colonies 
were  urgent,  they  had  neither  money  nor  bullion,  so  they  coined 
their  credit  into  money.  It  was  Hobson's  choice,  "That  or  no- 
thing.'' Poor  as  it  was,  it  assisted  the  Colonies  to  independence, 
the  object  sought. 

In  1797,  the  Bank  of  England  closed  its  doors  against  its  note 
holders,  it  could  not  redeem  its  notes  in  gold  as  the  law  required, 
but  the  Government  permitted  the  bank  to  issue  irredeemable 
cheap  money  for  23  years.  The  Government  made  these  notes 
legal  tender,  the  Government  as  well  as  the  bank  directors  knew, 
it  was  paper  money  or  no  money  at  all,  as  those  times  were  con- 


126 

sidered  too  dangerous  for  gold  and  silver  to  uncover  themselves. 
The  issue  of  that  cheap  money  proved  a  wise  and  profitable 
policy  for  the  English  people,  as  the  nation  was  said  to  have 
flourished  as  never  before  during  those  years  of  cheap  money 
notwithstanding  its  exhaustive  wars  with  the  French  at  the  time. 
In  America  during  the  rebellion  all  gold  redemption  banks 
failed,  the  system  of  specie  payments  utterly  collapsed,  all  coin 
left  the  channels  of  trade.  The  Government  borrowed  at  home 
and  abroad  at  great  sacrifice  as  long  as  its  credit  was  accepted. 
Tne  money  requirement  of  the  Government  was  large  and  urgent, 
it  had  tried  every  plan  known  to  statesmen  to  borrow  and  thus 
supply  itself  with  money  and  failing,  there  was  nothing  it  could 
do  but  coin  its  own  credit  into  money,  which  was  done.  Thus 
the  greenback  was  born,  a  child  of  necessity,  and  the  Govern- 
ment fought  the  war  to  a  finish  by  the  assistance  of  this  irre- 
deemable cheap  money.  It  was  that  or  nothing  and  time  has 
shown  its  value.  It  now  fills  the  place  of  so  much  gold  coin, 
dollar  for  dollar,  for  all  domestic  money  purposes,  even  to  being 
an  acceptable  redeemer  for  the  National  Bank  note. 

What  would  the  Century  writer  and  others  of  his  faith  have 
done  in  such  money  crisis  as  those  referred  to  above?  Would 
they  recommend  issuing  a  paper  currency,  which  brought  pros- 
perity to  the  troubled  land  as  did  the  wise  men  of  those  times, 
or  shut  their  eyes,  remain  inactive  and  let  financial  ruin,  poverty 
and  despair  overwhelm  the  country  and  its  people,  as  our  Con- 
gress and  Government  have  done  the  past  eight  and  a  half  years  ? 
Causing  a  loss  to  Government  and  people  over  twelve  billion 
dollars  by  depreciation  of  values,  loss  of  labor  and  other  causes. 
It  is  logical,  that  if  ever  there  was  a  cheap  money  that  did  not 
depreciate,  other  issues  may  be  made  that  will  not  depreciate, 
if  they  embody  the  same  principles  and  surroundings  and  that 
too  without  a  gold  redemption,  and  as  these  pages  show,  new, 
tried  and  effective  principles  may  be  added  that  did  not  accom- 
pany the  issues  above  referred  to,  thus  making  all  issue  doubly 
sure. 

I  will  follow  the  magazine  writer  a  little  further  as  he  intimates 
that  all  money  afflictions  are  brought  upon  the  people  by  the 
issue  of  cheap  money.  So  far  the  consideration  of  those  who 
have  never  looked  up  the  matter,  I  will  affirm  without  any  fear 
that  I  can  be  answered,  and  be  able  to  prove,  that  more  evils 
have  fallen  upon  man  through  the  working  and  failure  of  gold 


127 

banks  and  the  specie  payment  system  of  money,  than  from  all 
cheap  money  issues  the  past  200  years.  Yet  these  facts  are 
totally  ignored  by  the  enemies  of  "cheap  money." 

For  me  to  name  in  detail  the  voluminous  failures  of  the  coin 
redemption  banks  and  "Hard  Money"  systems,  the  heartache, 
misery  and  the  material  loss  occasioned  by  their  failures,  the 
record  would  be  unnecessarily  long.  So  I  will  only  refer  to  a 
few  noted  cases.  The  City  of  Glasgow  Bank  with  its  133  branches 
failed  in  October,  1878  after  a  comparatively  long  life,  leaving 
its  notes  unredeemed  and  its  deposits  unpaid  to  the  amount 
o+  $30,500,000.  This  was  a  gold  bank  failure  not  a  "cheap  money" 
bank  and  the  loss  and  misery  caused  by  it  will  never  be  known. 

The  Baring  Brothers'  failure  a  few  years  ago,  with  liabilities 
of  $105,000,000  dollars  promised  to  be  the  most  disastrous  bank 
failure  of  the  Century  and  a  money  panic  in  Europe  was  only 
prevented  by  the  timely  assistance  of  Russia's  $7,500,000, 
France's  $15,000,000  and  a  guarantee  fund  of  $86,000,000  raised 
by  subscription. 

This  eased  off  the  most  serious  part  of  the  threatened  Euro- 
pean money  panic.  But  the  thought  of  its  coming  so  near,  shook 
with  ominous  effect  the  financial  centres  of  Europe  and  South 
America,  and  proved  a  disastrous  quake  in  Australia  whose  Joint 
Stock  Bank  failed  with  $65,000,000  liabilities.  The  deposits 
amounted  to  $55,000,000.  The  bank  had  200  branches  in  Aus- 
tralia. Following  the  above  failure  it  was  announced  the  bank 
failures  of  Australia  altogether  amount  to  $440,000,000.  These 
are  the  most  important  failures  since  the  Barings'  failure  of 
England.  These  were  reported  before  1893.  The  Bank  of  Eng- 
land failed  in  1797,  1837,  1847,  l&57  an(l  1866;  that  is,  it  closed 
its  doors  against  its  note  holders  and  depositors,  contrary  to 
law,  it  could  not  redeem  its  notes.  During  the  first  named  failure 
the  Government  came  to  the  aid  of  the  bank  and  granted  the 
bank  the  ri^ht  to  issue  an  unlimited  amount  of  irredeemable  notes 
and  the  Government  made  them  a  legal  tender.  This  bank  up  to 
its  1797  failure  was  a  gold  bank  of  the  most  pronounced  type. 
After  the  Government  came  to  its  aid  it  was  made  a  "cheap 
money"  bank  and  remained  so  for  over  20  years.  During  this 
period  the  Bank  of  England  was  a  tower  of  strength  to  the  Gov- 
ernment. The  loans  negotiated  by  the  bank  for  the  Government 
during  its  cheap  money  existence  amounted  to  £350,000,000. 
I  hit  what,  after  all,  enabled  Great  Britain  to  surmount  all  diffi- 


128 

culties  and  come  off  victorious  in  one  of  the  greatest  contests 
of  modern  times  was  the  wonderful  development  of  her  produc- 
ing forces  occasioned  by  the  abundances  of  money  put  into  cir- 
culation by  the  war — irredeemable  paper  though  it  was.  All 
classes  of  society  participated  in  the  general  prosperity  which 
prevailed  during  this  twenty-three  years  of  irredeemable  "cheap 
money." 

No  one  was  so  blind  as  not  to  be  able  to  see,  that  Great  Britain 
was  enabled,  by  her  cheap  money  alone,  to  carry  on  her  wars 
on  the  continent,  and  that  by  it  alone,  were  the  people  enabled 
to  make  such  remarkable  progress  in  commerce,  agriculture, 
manufacture  and  war. 

We  may  reap  instruction  by  a  partial  summing  up  of  the  two 
cases:  That  of  America  before  the  greenback  issue,  the  Govern- 
ment and  the  people  were  in  financial  straights — gold  and  silver 
coin  had  left  the  channels  of  trade.  The  banks  had  all  suspended 
specie  payments  except  on  the  Pacific  Coast;  currency  for  busi- 
ness was  confined  to  notes  of  suspended  banks ;  no  gold  or  silver 
coin  could  either  be  bought  or  borrowed  or  collected  as  a  tax 
from  the  people;  business  depression  was  heavy  upon  the  people, 
and  a  Civil  War  pending  all  were  suffering  and  no  relief  in  sight. 
The  same  may  be  truthfully  said  of  Great  Britain  before  the 
Bank  of  England  closed  its  doors  in  1797  against  its  patrons, 
depositors  and  note  holders.  This  suspension  did  not  take  place 
until  the  bank  had  refused  all  discount  to  its  customers,  even  on 
the  best  sixty  day  commercial  bills  secured  by  Government  se- 
curity. Bear  in  mind,  the  financial  trouble  in  both  countries  was 
caused  by  the  failure  of  numerous  bullion  banks,  not  "cheap 
money"  banks.  Both  countries  took  nearly  the  same  means  to 
relieve  their  financial  affliction.  The  Bank  of  England  notes 
were  made  a  legal  tender  by  Parliament.  The  American  distress 
was  relieved  by  the  issue  of  the  greenback  and  other  treasury 
notes.  After  the  above  issues  of  irredeemable  "cheap  money," 
business  immediately  revived.  Men  were  encouraged  and  took 
up  their  broken  threads  of  business,  and  general  prosperity  was 
enjoyed  by  the  people  of  both  countries;  England  enjoyed  it 
23  years  and  America  19  years.  At  the  end  of  these  periods  the 
bullionists  commenced  their  work  of  restoring  gold  redemption. 
Then  it  was  the  people  suffered  physically,  mentally  and  finan- 
cially, even  worse  than  before  the  bank  failure  over  20  years 
before.  I  must  not  pass  this  question  without  referring  to  the 


129 

French  who  are  credited  with  being  more  successful  in  the  man- 
agement of  money  matters  than  most  civilized  nations.  Yet  they 
have  had  their  financial  flurries,  money  panics  and  industrial  de- 
pressions arising  from  the  collapse  of  their  specie  payment  sys- 
tems, and  the  thing  to  note  is,  they  helped  themselves  out  by 
issuing  a  legal  tender  paper  money,  the  same  as  Great  Britain 
and  America  has  done  as  recited  above.  I  will  refer  to  only  two 
noted  instances,  viz:  1848  and  1870,  when  the  French  were  put 
to  the  test.  In  the  first  case  the  financial  stress  was  so  great, 
that  out  of  a  payment  of  twenty-six  millions  fallen  due  only  forty- 
seven  thousand  francs  could  be  collected. 

In  this  extremity  the  Government  came  to  the  rescue,  and,  on 
the  night  of  the  T5th  of  March,  the  notes  of  the  Bank  of  France 
were  by  a  decree  made  a  legal  tender.  After  the  decree,  the  great 
difficulty  met  with  was  to  print  the  notes  fast  enough  for  the 
public  consumption,  in  ten  days  the  amount  issued  reached  800,- 
000,000  francs,  more  than  100,000,000  was  made  over  to  the 
Treasury  and  the  executive  departments  of  Paris;  230,000,000 
francs  were  loaned  to  the  Government  on  exchequer  bills.  The 
bank  made  advances  to  the  City  of  Paris,  to  Marseilles,  to  the 
department  of  the  Seine,  and  to  the  hospitals,  amounting  in  all 
to  260,000,000  more. 

This  was  not  all.  To  enable  the  manufacturing  interests  to 
weather  the  storm,  a  decree  of  the  National  Assembly  had  direct- 
ed warehouses  to  be  opened  for  the  reception  of  all  kinds  of 
goods,  and  loans  were  made  on  merchandise  stored  in  these 
warehouses,  some  18,000,000  loaned  to  the  people  of  Havre, 
and  14,000,000  to  the  people  of  Paris — in  all  60,000,000.  Thus 
every  interest  of  the  community  from  the  Minister  of  the  Treas- 
ury down  to  the  trader  in  a  distant  outpost  was  protected.  Thus 
by  this  issue  of  paper  money  was  a  fresh  supply  of  business  life- 
blood  pumped  into  the  exhausted  arteries  of  trade  and  industry. 

In  1870,  the  Bank  of  France  suspended  specie  payments  and 
issued  legal  tender  notes  to  an  immense  amount,  with  like  mar- 
velous results.  The  amount  increased  from  275,000,000  francs 
in  1871  to  602,000,000  in  October,  1873.  These  irredeemable 
notes,  as  in  the  other  cases  referred  to,  relieved  the  money  pres- 
siuv,  and  the  industries  proceeded  with  greater  prosperity  than 
before  the  failure  of  specie  payments. 

Again,  to  save  the  industries  of  France  from  collapse  after 
one  billion  dollars  gold, — its  then  business  life-blood  had  been 


130 

paid  as  indemnity  to  Germany.  France  immediately  issued  five 
hundred  million  dollars  of  legal  tender  paper  money  to  fill  its 
place,  and  the  French  people  vigorously  prosecuted  their  indus- 
tries with  it,  and,  so  far  as  business  was  concerned,  never  missed 
their  gold,  and  flourished  better  without  it  than  Germany  did 
with  it. 

The  point  I  make  here  is,  gold  coin  having  disappeared,  busi- 
ness depression  was  prevented  by  the  issue  of  paper  money. 
Mind  you,  paper  money  did  not  drive  the  coin  out  of  the  country, 
the  German  army  did  that.  It  must  be  observed  that  it  makes 
no  difference  whether  coin  is  driven  out  of  the  country  by  a  war 
of  nations,  or  driven  out  of  circulation  by  a  financial  war,  the 
disastrous  effect  upon  business  is  the  same  in  all  specie  payment 
countries  when  coin  from  any  cause  is  scared  or  driven  out  of 
circulation,  but  the  trouble  is  soon  remedied  if  its  Government 
is  wise  enough  to  issue  a  legal  tender  paper  money  to  fill  its 
place,  as  England,  France  and  America  have  done.  It  would 
more  than  fill  its  place,  if  it  was  issued  by  the  Government  and 
loaned  by  it  to  the  people  upon  security. 

Allow  me  to  ask.  Can  bullionists  point  to  any  achievement 
of  coin  equal  in  importance  the  "cheap  money"  performances 
above  referred  to  in  England,  France  and  the  United  States? 
If  not  what  can  they  think  to  gain  by  writing  down  "cheap 
money"  when  it  performs  feats  for  the  good  of  man  that  private 
coin  never  did — and  I  may  say — never  will  perform.  From  the 
above  showing  it  would  seem  that  "cheap  money"  was  a  more 
valuable  business  tool  than  coin.  It  no  doubt  is  so,  but  to  always 
insure  its  success,  and  its  par  value  with  gold  coin  at  all  times, 
it  must  be  issued  and  distributed  as  the  Bill  in  these  pages  provides. 

It  will  be  seen  that  the  times,  the  gold  bank  failures  and  the 
loss  and  misery  ingendered  by  it,  and  the  triumphs  of  "cheap 
money"  in  restoring  prosperity,  plenty  and  happiness  to  the 
people,  form  some  of  the  most  remarkable  pages  in  the  world's 
history  of  modern  times,  as  it  tried  men's  souls  as  well  as  their 
money  systems.  Napoleon  and  the  Southern  Confederation  were 
driven  to  their  death  by  the  use  of  "cheap  money"  which  is  the 
only  money  that  could  or  ever  did  endure  such  political  and 
financial  pressure  as  those  referred  to  above.  Please  note  gold 
and  silver  left  the  channels  of  trade  before  the  "cheap  money"  was 
issued.  This  being  true  in  all  cases,  bullion  advocates  should  for 
truth's  sake  cease  claiming  that  "paper  currency  always  drives 


gold  and  silver  coin  out  of  circulation."  When  the  truth  is,  as 
in  the  cases  cited.  Coin  always  hides  in  times  of  national  trouble 
and  financial  depressions,  and  "cheap  money"  is  forced  in  to 
fill  the  void  left  by  the  coin. 

Another  thing  to  note:  All  the  financial  trouble  in  the  cases 
referred  to,  was  caused  by  the  suspension  and  the  resumption  of 
specie  payments;  and  all  the  prosperity  which  was  unprecedented 
was  between  fhe  suspension  and  resumption  panics,  and  was 
effected  by  "cheap  money"  with  no  metallic  base. 

The  following  are  some  of  the  individual  gold  bank  failures 
that  took  place  in  California  during  the  space  of  28  years.  There 
have  been  the  tumbling  down  of  Palmer,  Cook  &  Co.,  Adams 
&  Co.,  Page,  Bacon  &  Co.,  Burgoyne,  Wells,  Wright,  Neglee, 
Lee  and  a  dozen  or  so  more  banks  with  more  or  less  loss  during 
the  28  years.  None  of  these  failures  can  be  charged  to  "cheap 
money."  These  were  gold  banks  failing  upon  their  own  merits, 
at  different  times,  without  a  threatened  war,  or  a  scare  from  any 
other  cause  to  create  a  money  panic  save  their  own  weakness. 
1837,  1853-4,  1857-8,  1860-1,  1873  ancl  J^93  are  some  of  the 
more  conspicuous,  general  gold  bank  failures  that  ever  afflicted 
tin-  people  of  the  United  States.  From  the  date  of  their  first 
effect  until  the  "hard  times"  ceased,  varied  from  seven  to  ten 
years, — approximately. 

The  rumbling  of  the  approaching  1893  panic,  began  to  be 
heard  during  President  Cleveland's  first  presidential  term.  Caus- 
ed by  the  retiring  and  the  destruction  of  $147,000,000  of  National 
Bank  notes,  about  $26,000,000  greenbacks  in  the  Treasury  for 
the  further  redemption  of  National  Bank  notes,  and  $10,000,000 
in  notes  supposed  to  be  lost.  Thus  making  $183,000,000  of 
business  life-blood  withdrawn  from  use  at  a  time  when  the  coun- 
try should  have  had  at  least  $200,000,000  of  new  money  to  keep 
pace  with  the  growth  of  the  country  as  every  year  added  one 
million  to  its  population  and  two  billion  dollars  in  value  to  its 
wealth,  and  of  course  required  money  in  a  proportionate  ratio. 

The  cause  of  the  rumbling  above  referred  to  began  to  be  felt 
the  first  year  of  Benj.  Harrison's  presidential  term  by  10,882  com- 
mercial failures,  and  followed  in  1890  with  10,907,  1891  12,273, 
1892  12,314.  Thus  making  46,376  commercial  failures  during 
President  Harrison's  four  years.  A  larger  number  of  failures 
than  any  four  years  had  ever  before  produced,  yet  Republicans 
tell  us  these  were  prosperous  years.  The  voters  of  the  country 


132 

did  not  think  so,  they  blamed  the  Republicans  for  the  hard  times, 
and  without  saying  "by  your  leave,"  thrust  them  from  power, 
and  replaced  the  Democrats,  who  willingly  took  charge  with 
Grover  Cleveland  as  captain  who  recklessly  steered  into  the 
full  blaze  of  panacy  glory  and  helped  it  on  to  full  fruition  by 
having  the  Sherman  silver  law  repealed,  by  which  the  people  had 
been  receiving  $54,000,000  of  new  money  yearly.  This  coupled 
with  other  causes  then  working  brought  on  the  1893  money  panic 
with  its  16,650  commercial  failures,  1894,  15,650;  1895,  13,197; 
1896,  15,286;  footing  more  failures  during  President  Cleveland's 
second  term  than  any  former  four  years,  which  combined  with 
the  failures  of  Mr.  Harrison's  term  make  107,141  commercial 
failures  during  the  eight  years  our  present  money  famine  has 
been  running  up  to  the  fourth  day  of  last  March  and  the  end  is  not 
yet,  however  Congress  and  the  President  is  looking  for  the  end 
through  tariff  spectacles.  They  may  see  it,  but  it  will  not  come 
through  tariff  manipulation.  A  money  famine  caused  the  trouble 
and  it  can  only  be  permanently  removed  by  liberal  supply  of 
money  in  the  channels  of  production  and  trade.  A  large  supply 
of  money  hoarded  in  banks  and  other  places  will  not  answer,  it 
must  be  in  circulation,  and  under  our  present  private  money 
system  that  is  difficult,  as  no  known  power  can  force  private 
money  into  circulation  if  its  owner  refuse. 

Such  is  our  present  situation  and.  so  it  has  been  the  past  eight 
and  a  half  years.  No  money  panic  ever  occurred  when  money 
was  circulating  freely  among  the  people,  and  as  private  money 
(we  never  had  any  other)  can  only  be  circulated  when  its  owner 
wills.  So, .to  avoid  all  future  money  flurries,  money  famines, 
money  panics  and  all  suffering  and  loss  inflicted  by  them,  a  new 
system  of  money  must  be  adopted,  viz:  A  Public  Money  such  as 
the  bill  herein  provides. 

Section  3  of  the  bill  says,  'The  branch  bank  directors  shall 
loan  money  to  the  Government,  to  the  States  and  to  the  people, 
upon  securities  which  shall  consist  of  Government  and  State 
bonds  at  90$  of  their  gold  market  value,  and  on  gold  and  silver 
bullion  at  90^  of  their  market  value  in  gold  coin,  and  on  real 
estate  at  not  more  than  one-half  of  its  taxable  value,  and  at  a 
rate  of  interest  not  to  exceed  y/c  per  annum.  Let  me  ask,  if 
money  had  been  loaned  to  the  people,  to  the  Government  and 
to  the  States  as  above  stated  in  1889  and  since  that  the  money 
famine  the  people  have  been  passing  through  the  past  eight  and 


133 

a  half  years,  with  their  suffering  and  $15,000,000,000  loss  of  wealth 
could  not  have  taken  place?  Or  any  part  of  such  money  depre- 
ciated although  made  of  cheap  material?  Bear  in  mind,  that 
according  to  the  above  bill  gold  coin  is  the  standard  of  value  and 
all  money  made  a  full  tender.  We  must  remember  also,  that 
during  this  eight  and  a  half  years  our  Government  has  loaned 
hundreds  of  millions  of  "cheap  money"  to  the  National  Bank 
owners  for  \%  per  annum  and  not  one  penny  depreciation  ever 
took  place,  although  hundreds  of  the  banks  to  whom  the  money 
was  loaned  failed  and  went  out  of  business,  yet  their  notes  did 
not  depreciate  as  they  were  fully  secured.  Suppose  our  Govern- 
ment had  loaned  a  full  legal  tender  cheap  money  during  this 
eight  and  a  half  years  to  farmers,  miners,  manufacturers,  mer- 
chants and  other  business  men  as  well  as  to  bankers,  upon  the 
same  kind  and  similar  valuable  securities  as  the  bankers  gave, 
would  it  have  depreciated  any  more  than  what  the  bankers  bor- 
rowed ?  If  not,  could  the  above  named  panic  have  taken  place  ? 
If  not,  what  is  the  magazine  writer,  and  the  old  political  parties 
kicking  about  when  more  cheap  money  is  demanded?  Seeing 
this  money  by  yielding  an  interest,  would  be  a  relief  and  not  a 
burden  to  the  Government  like  the  greenback,  as  the  borrower 
or  his  property  would  redeem  every  dollar. 

Loaning  to  the  people  as  the  bill  demands  would  enable  every 
citizen  to  obtain  money  upon  the  same  terms  as  bankers.  Thus 
making  interest  uniform  and  the  supply  of  money  ample  and  cer- 
tain in  business  channels,  and  money  panics  impossible  with 
money  thus  distributed. 

The  inforcement  of  the  principles  of  this  bill  would  date  a  new 
era  in  Government  finance  and  money,  making  as  great  a  revo- 
lution in  them  as  steam  has  made  in  commerce  or  electricity  in 
the  transmission  of  intelligence. 

To  circulate  money  after  making  it  sufficient  for  business  pur- 
poses, is  as  much  the  duty  of  the  Government  of  a  country  as  it 
is  for  it  to  make  it.  And  it  seems  as  much  out  of  place  for  a 
Government  to  shirk  or  farm  out  this  important  duty,  as  it  would 
be  for  it  to  shirk  any  other  constitutional  duty.  The  Treasury 
department,  the  Post  Office  department.  Judiciary,  the  Execu- 
tive, or  any  other  department,  as  money  like  water  and  manure 
becomes  useful  and  valuable  by  being  properly  distributed.  The 
loss  and  suffering  the  people  have  endured  the  past  eight  and  a 
half  years,  because  monev  could  not  be  circulated,  as  the  welfare 


134 

and  happiness  of  all  the  people  depends  upon  it.  Our  Govern- 
ment has  the  right  to  make,  loan  and  borrow  money,  and  are 
justly  entitled  to  all  revenue  derived  therefrom.  It  seems  un- 
statesmanlike  for  Government  to  go  abroad  to  borrow  money 
which  it  has  full  power  to  make  and  distribute.  If  the  bill  herein 
was  enacted  the  Government  would  receive  a  large  revenue  from 
the  money  loaned  by  the  banking  department  and  borrow  all 
the  money  it  may  want  from  this  bank,  and  cease  going  abroad 
to  borrow. 

Above,  I  have  lightly  touched  the  subject  of  the  evils  arising 
from  both  dear  money  and  cheap,  and  think  the  preponderence 
of  evidence  is  greatly  in  favor  of  cheap  money  as  the  lessor  evil, 
and  if  issued  and  distributed  by  the  Government  direct  to  the 
people  upon  security,  then  it  would  be  so  superior,  comparisons 
would  be  odious,  as  that  is  the  only  safe  and  just  way  of  distri- 
buting money  from  first  hands. 

I  could  follow  the  Century  writer  in  his  further  wanderings 
in  search  of  more  evils  arising  from  the  issue  of  cheap  money. 
And  I  could  continue  to  point  to  more  broken  banks,  robbed 
depositors,  shrinkage  of  values,  business  failures,  money  flurries, 
money  panics.  Misery  and  death,  brought  upon  man  by  the 
failure  of  gold  banks  and  the  failure  of  the  specie  payment  system 
of  money,  but  enough  has  been  said  on  both  sides  to  convince 
the  reader  that  the  times  are  fully  ripe  for  the  introduction  into 
the  world  of  a  new  and  more  perfect  system  of  money,  the  more 
so,  if  a  system  can  be  invented  so  perfect  that  none  of  the  evils 
arising  from  the  cheap  and  dear  money  system  of  the  past  and 
present  would  ever  afHict  the  people  of  any  country  that  adopt  it. 
For  such  a  system  the  reader  is  referred  to  the  system  elaborated 
in  these  pages,  as  it  contains  all  the  virtues  of  the  dear  and  cheap 
money  systems  of  the  past  with  many  new  ones  added,  but  none 
of  their  defects. 

This  same  writer  in  the  December  number  of  the  Century 
thus  discourses  against  an  increase  of  currency,  "If  the  circulation 
were  to  be  doubled,  or  trebled,  or  quadrupled,  what  reason  is 
there  for  believing  that  the  people  who  have  least  at  present  would 
have  any  more?  How  would  they  go  to  work  to  get  some  of 
the  increase  into  their  own  pockets  ?  How  can  a  man  who  wants 
some  of  it  obtain  it  except  to  give  labor  or  goods  for  it?  Who 
are  the  men  who  hope,  in  some  mysterious  manner,  to  get  money 
into  their  pockets  through  a  great  issue  of  cheap  money  by  the 


135 

Government?"  The  gentleman  will  see  below  "Who  are  the 
men  who  hope,  in  some  mysterious  manner  to  get  money  into 
their  pockets?"  In  fact,  how  to  both  get  and  keep  money  into 
their  pockets. 

It  is  a  conservative  estimate  to  claim,  that  the  debts  of  our 
Government,  the  States  and  their  people  is  $20,000,000,000, 
which  at  6^  yield  money  lenders  the  enormous  sum  of  $12,000,000 
dollars  yearly,  but  under  the  public  money  system  outlined  in 
these  pages,  money  can  always  be  borrowed  for  a  uniform  in- 
terest of  3$  per  annum,  which  would  be  more  equitable  and  save 
the  borrowers  $600,000,000  yearly,  quite  a  sum  truly,  from  which 
"to  get  some  of  the  increase  into  their  own  pockets."  Enough 
yearly  to  build  three  Pacific  railroads,  or  to  employ  all  the  un- 
employed industry  of  the  country,  to  make  improvements,  open 
farms  and  mines,  keep  factories  and  business  running,  paying 
debts,  paying  for  labor,  paying  for  food,  clothing  and  schooling 
for  children,  paying  for  material  and  erecting  improvements, 
paying  merchants,  farmers  and  manufacturers  for  supplies,  etc. 
These  are  ways  some  of  this  $600,000,000  of  unjust  interest 
would  circulate  and  get  into  the  people's  pockets,  putting  food  in 
their  mouths,  clothes  on  their  bodies,  shelter  over  their  heads 
and  joy  and  thankfulness  into  their  hearts.  Besides  the  above 
this  public  money  system  would  circulate  other  money  to  supply 
the  people's  need,  which  private  money  owners  have  refused  them 
the  past  eight  and  a  half  years,  hence  arose  our  present  financial 
afflictions.  It  must  be  remembered  that  rich  men  and  bankers 
borrow  money  from  one  per  cent,  to  four  per  cent.,  while  poor 
men  requiring  small  sums,  pay  from  ten  per  cent,  to  twenty  per 
cent.  More  people  have  been  evicted  from  their  homes  in  the 
United  States  the  past  year,  because  they  could  not  pay  this 
usurious  interest,  than  have  been  evicted  from  rented  homes  in 
Ireland  the  past  20  years.  So  this  public  money  system  would 
not  only  save  money  in  the  pockets  of  these  poor  people  (our 
brethren)  but  it  would  enable  them  to  retain  their  homes  for  the 
enjoyment  of  wife,  children  and  self. 

Does  the  magazine  writer  begin  to  see  "How  men  can  get 
money  into  their  pockets  through  a  great  issue  of  cheap  money 
by  the  Government  ?"  If  not  look  further  along. 

The  losses  the  Government  and  people  have  endured  the  past 
eignt  and  a  half  years  from  idle  labor,  idle  machinery,  idle  money, 
idle  transportation  plants,  broken  banks,  commercial  failures, 


I36 

business  depression  and  greater  than  all,  depreciation  of  values 
the  wnole  loss  estimated  to  be  $15,000,000,000,  caused  by  a 
deficient  supply  of  money  in  production  and  trade  channels.  I 
claim  if  Congress  had  authorized  an  ample. issue  of  money  in 
1889  wnen  the  present  money  famine  first  began  to  be  felt,  and 
distributed  it  as  demanded  by  the  bill  herein,  the  entire  loss  above 
named  would  have  been  saved,  as  then,  good  times  would  have 
been  the  rule.  So  instead  of  a  $15,000,000,000  loss  the  past  eight 
and  a  half  years  there  would  have  been  $17,000,000,000  added  to 
the  wealth  of  the  nation  during  that  time,  as  $2,000,000,000  of 
wealth  per  annum  is  only  the  normal  increase  of  the  wealth  of  our 
country  in  prosperous  years.  The  difference  between  a  $15,000,- 
000,000  loss  and  a  $17,000,000,000  increase  with  no  loss,  is  large 
enough  to  put  large  sums  of  money  into  the  pockets  of  a  million 
people,  or  kept  it  there,  instead  of  loosing  it  as  they  have  the 
past  eight  and  a  half  years.  If  an  ample  supply  of  public  money 
issued  in  1889,  would  have  saved  the  country  and  the  people  the 
loss  and  suffering  they  have  since  endured,  it  would  be  potent 
enough,  to  prevent  all  future  money  panics,  if  it  be  issued  and 
circulated  as  the  foregoing  bill  demands.  Does  the  opponents 
of  cheap  money  yet  see  how  money  could  get  into  the  pockets  of 
the  people  by  ample  issue  of  money  by  the  Government  ? 

The  improvements  and  civilizing  influences  above  named  all 
tend  to  man's  happiness,  and  as  none  of  these  can  be  produced 
without  money,  a  cheap  supply  of  money  should  be  the  first  con- 
sideration. 

The  aim  of  cheap  money  advocates  is  not  to  make  a  poor 
money  by  making  it  of  cheap  material,  any  more  than  we  would 
wish  to  make  cheap  food,  cheap  clothing  and  other  necessaries 
by  making  them  of  poor  material.  The  legitimate  aim  of  im- 
provements, is  to  make  things  better  as  well  as  cheaper.  Cheap 
money  as  herein  advocated  is  gold  standard  in  value,  but  stamped 
upon  cheap  material.  It  is  a  full  tender  and  will  pay  as  much 
debt,  and  as  much  tariff  and  taxes,  dollar  for  dollar  as  gold  coin. 
We  want  cheap  and  good  money,  and  the  enactment  of  the  within 
bill  would  provide  it.  Not  cheap  because  poor,  but  cheap  be- 
cause plenty. 

We  can't  expect  to  have  cheap  and  plenty  of  money  made  of 
gold,  any  more  than  we  could  have  cheap  foot  and  yard  measures, 
or  cheap  gallon  or  bushel  measures  made  of  gold,  yard  measures 
made  of  steel  would  be  cheaper  than  if  made  of  gold,  if  made  of 


137 

wood  still  cheaper,  yet  they  would  measure  length  just  as  ac- 
curately as  if  made  of  gold.  Gold  foot  or  yard  measures  are 
just  as  essential  for  correct  measures  of  length  as  gold  coin  is 
for  correct  measures  of  value,  silver  measures  of  value  are  in 
their  material  cheaper  than  gold  and  paper  measures  are  still 
cheaper,  yet  either  material  made  legal  measures  of  value  will 
measure  values  just  as  accurately  as  measures  made  of  gold. 
The  National  Bank  note  measures  values  just  as  accurately  as 
gold  coin,  because  it  is  secured  by  a  gold  coin  value  and  is  worth 
its  face  value  in  gold  coin  whether  the  bank  issuing  it  be  alive 
or  dead.  So  it  would  be  with  the  public  money  advocated  in  these 
pages  it  would  be  all  amply  secured  whether  it  be  made  of  gold, 
silver  or  paper. 

Although  our  present  measures  of  value  are  largely  made  of 
cheap  material,  its  method  of  distribution  is  so  imperfect  that 
money  is  no  cheaper  to  the  borrower.  We  must  have  cheaper 
money,  and  to  have  it  cheaper  it  must  be  plenty,  and  to  be  plenty 
it  must  be  made  of  suitable  and  cheap  material,  mostly  of  paper, 
as  gold  is  too  scarce  and  too  valuable  to  be  plenty,  and  silver 
too  bulky  to  be  satisfactory.  But  if  the  within  bill  is  enacted, 
money  will  always  be  abundant  and  obtainable  for  3$  per  annum, 
and  distributed  upon  demand  by  the  Government  banks  to  the 
people,  to  the  States  and  to  the  Government,  to  be  secured  by 
State  bonds,  Government  bonds  and  bullion  at  90$  of  their  market 
value  in  United  States  gold  coin,  and  real  estate  at  half  of  its  tax- 
able value.  We  fail  to  see  why  every  citizen  should  not  have  the 
same  privilege  as  bankers,  to  borrow  money  of  the  Government, 
by  the  enactment  of  the  within  bill,  they  would  acquire  that  right, 
as  its  essence  is,  equal  rights  to  all,  special  privileges  to  none. 

The  ideal  money  system  is  an  institution  of  absolute  security, 
whose  money  must  be  sound  in  quality,  ample  in  quantity,  its 
circulation  just,  its  redemption  sure,  its  interest  uniform,  neither 
too  low  nor  too  high,  but  approximating  the  net  income  of  the 
industries  and  ulwiys  obtainable  upon  security. 

I  unhesitatingly  affirm  with  no  fear  that  I  can  be  answered, 
that  the  public  money  system  herein  advocated  fills  every  demand 
of  the  ideal  money  system,  while  our  present  money  system  fills  only 
one  of  its  demands.  No  wonder  we  so  often  suffer  financial 
afflictions. 

Our  National  Banking  system  is  superior  to  any  banking  insti- 
tution ever  organized  in  America,  yet  it  don't  fill  the  bill.  Its 

10 


notes  are  safe  and  that  is  the  only  thing  about  them  that  is  abso- 
lutely secure,  and  the  only  qualification  they  can  justly  claim  of 
the  requirements  demanded  for  the  ideal  money  system. 

Senator  Stanford  proposed  to  coin  land  values  into  money. 
Another  Senator  wants  State  credit  coined  into  money.  Bullion 
owners  demand  that  all  bullion  be  coined  into  money,  etc.  Yet 
if  all  these  demands  be  granted  they  would  not  fill  the  require- 
ments demanded  by  the  ideal  money  system. 

The  money  system  herein  elaborated  contains  all  the  virtues  of 
all  American  money  systems  with  none  of  their  defects.  It  will 
supply  more  of  the  demands  of  the  ideal  money  system,  than 
the  Stanford,  the  National  Bank,  the  "hard  money"  and  the 
greenback  systems  combined  without  making,  farmers,  National 
Bank  owners,  bullion  owners  or  any  other  class  of  citizens  special 
pets.  The  Stanford  plan  is  confined  to  farmers  and  limited  in 
time  to  20  years.  The  advantages  of  the  National  Bank  bill  is 
conferred  only  on  National  Bank  owners  and  limited  in  both 
time  and  amount.  The  greenback  and  hard  money  systems  are 
arbitrarily  limited  in  amount  either  by  law  or  scarcity  of  material. 
The  "public  money  system  herein  is  limited  in  amount  only  by 
^demand  for  use,"  that  being  the  natural  law  of  limit  and  the 
life  of  the  nation  is  its  only  limit  as  to  time,  the  same  as  any  other 
department  of  the  Government. 

Public  money  as  elsewhere  stated,  is  money  created  by  Con- 
gress and  owned  by  all  the  people,  and  loaned  and  administered 
through  a  Government  Banking  department  for  the  benefit  of 
the  Government,  the  States  and  all  the  people.  The  banks  of  this 
department  are  banks  of  savings  and  deposits  as  well  as  banks 
of  loaning  and  redemption.  So  it  requires  no  argument  to  show 
that  money  deposited  in  these  banks  would  be  positively  safe. 

In  conclusion  we  suggest  that  as  we  have  used  only  private 
banks  and  private  money,  the  past  100  years,  resulting  in  money 
flurries  and  panics  every  few  years  as  a  punishment  for  our 
ignorance,  or  selfishness,  to  teach  us  knowledge  and  truth,  sug- 
gests that  public  money  and  Government  banks  should  now  be  tried, 
and  if  tried,  would  surely  prove  to  be  the  gospel  of  financial  salva- 
tion to  both  Government  and  people. 


CHAPTER  XXIX. 


INFLATION,  ISSUE,   REDEMPTION,   ETC. 

If  this  banking  department  was  in  operation,  the  questions  of 
"inflation,"  "issue,"  "redemption"  and  "specie  payments,"  would 
be  forever  settled.  And  whereas,  all  other  Government  depart- 
ments are  expensive  and  mostly  maintained  by  public  taxation, 
this  department  would  pay  its  own  way,  redeem  our  present 
greenbacks,  (should  that  be  required),  pay  our  national  debt  and 
furnish  the  American  people  with  a  national  currency  (public 
money),  uniform  in  value,  always  adequate  in  amount,  but  never 
a  surplus,  and  the  words  "inflation,"  "contraction,"  etc.,  that 
now  engross  so  much  of  the  attention  of  Congress  would  have 
no  meaning  in  connection  with  currency,  and  in  times  of  public 
danger  when  the  national  credit  ran  low,  this  department  would 
be  the  financial  backbone  of  the  Government,  giving  tone,  credit 
and  strength  to  the  whole  structure.  Our  Government  would 
s«>on  be  the  largest  money  lender  in  the  world,  now  it  is  one  of 
the  largest  borrowers. 

By  the  assistance  of  this  public  money,  the  people  of  the  United 
States  would  increase  their  material  wealth  faster  than  at  any 
period  in  their  past  history.  Confidence  would  be  firmly  restored 
to  the  business  community,  mines,  factories,  farms,  railroads  and 
other  enterprises  could  be  built,  opened  and  operated,  that  now 
cannot  be  done  with  money  supply  uncertain  and  interest  high 
and  fluctuating.  Then  no  fears  could  exist  of  money  getting 
scarce  or  interest  so  high,  no  business  could  be  profitably  trans- 
acted with  borrowed  money.. 

Why  should  we  not  have  such  a  currency?  Money  is  created 
by  law  to  produce,  measure  and  exchange  values,  in  fact  to  facili- 
tate the  transaction  of  business,  and  of  right,  should  be  limited 
only  by  the  demands  of  that  business. 

Now  business,  the  production  and  distribution  of  wealth  are 
limited  by  the  supply  and  price  of  money. 


140 

What  would  be  thought  of  the  Post  Office  department  created 
by  law  to  facilitate  communication,  yet  hampered  and  restricted, 
so  as  to  carry  only  a  part  of  the  correspondence  ?  Yet  a  law  forc- 
ing the  postal  department  to  limit  the  correspondence,  would  be 
less  objectionable  than  the  law  permitting  the  currency  supply  to 
limit  or  in  any  manner  hamper  the  business  of  the  country.  The 
first  withholds  information  only,  the  latter  withholds  business 
life-blood,  and  deprives  many  people  of  life's  comforts — food, 
clothing  and  habitations. 

Borrowers  being  the  distributors  of  money  from  first  hands, 
should  always  be  supplied  with  money  if  they  tendered  the  legal 
security.  Under  the  system  of  public  money  herein  advocated 
no  one  could  be  refused. 

Fortunately  the  postal  department  keeps  pace  with  the  spirit 
and  improvements  of  the  age;  but  in  national  finance  and  cur- 
rency, no  improvements  have  been  made  for  scores  of  years.  The 
law  created  the  postal  department,  but  set  no  limit  to  the  corres- 
pondence. 

The  law  creates  the  currency,  but  limits  it  in  quantity,  con- 
sequently limits  the  business  intended  to  be  transacted  by  it. 
Not  only  so,  but  places  the  distribution  of  it  measurally  in  few 
hands,  thus  giving  man  power  to  make  money  plenty  and  cheap 
or  scarce  and  high. 

With  money  resting  on  so  unwise  and  fluctuating  a  foundation, 
who  can  wonder  that  financial  earthquakes  occur  so  frequently 
and  shake  the  financial  centers  of  business  throughout  the  civiliz- 
ed world.  Under  the  money  system  herein  advocated  no  financial 
quakes  would  be  possible,  as  money  would  always  be  available 
at  three  per  cent,  per  annum  upon  proper  security. 


CHAPTER  XXX. 

THIS  BANKING  SYSTEM  SHOULD  SURELY  BE 

TRIED. 

This  banking  institution  being  owned  by  all  the  people,  and 
operated  by  their  own  chosen  agents  and  its  currency  a  true 
representative  of  value  and  always  at  par  with  the  gold  coin 
standard  of  value,  being  all  secured  by  durable  property  worth 
more  than  the  face  value  of  the  currency  loaned  upon  it. 

The  magnitude  of  the  operations  of  this  banking  institution, 
its  order,  its  dignity,  responsibility  and  certainty  of  its  opera- 
tions, must  command  the  attention,  confidence  and  respect  of 
man  and  would  be  adopted  in  time  by  all  civilized  nations,  and 
thus  become  the  universal  money,  it  being  a  worthy  example  for 
all  to  follow;  and  thus  escape  financial  panic,  and  the  modern 
curse  of  an  inadequate  currency  unjustly  distributed. 

What  would  be  the  influence  of  the  English  Bank  upon  the 
business  world,  with  its  one  or  two  hundred  millions  of  circu- 
lation, and  its  monthly  changes  of  interest,  with  its  suspensions 
and  resumptions,  compared  to  this  national  institution  with  its 
billions  of  circulation,  and  its  interest  as  steady  as  the  needle  to 
the  pole  and  always  open  for  business  with  an  ample  supply  of 
money  on  hand.  It  would  never  be  under  the  necessity  of  pro- 
tecting its  honor  by  the  selfish  act  of  raising  the  rate  of  interest 
on  its  loans. 

Congress  could  find  no  doubt  as  much  authority  to  justify  it 
in  organizing  this  banking  department  for  the  purposes  here 
specified,  as  it  did  to  create  a  navy  department,  an  agricultural 
department,  or  even  a  postal  department,  and  should  it  be  organ- 
ized as  the  foregoing  bill  provides,  the  confusion,  inadequacy 
and  uncertainty  now  existing  in  our  present  monetary  systems 
would  be  changed  to  order,  dignity  and  certainty. 

It  is  an  historical  fact,  that  the  United  States  have  not  now 
ncr  ever  did  have  a  just  and  adequate  system  of  national  cur- 


142 

rency,  at  times  some  parts  were  well  supplied  while  other  parts 
were  suffering. 

Experiments  and  expedients  numerous  have  been  tried  and 
found  wanting,  and  much  valuable  time  consumed  in  patching 
and  propping  imperfect  theories  which  eventually  went  down. 

Now  that  a  just  and  adequate  system  of  public  money  has  been 
devised,  adapted  to  the  wants  of  our  people  for  all  time  and 
for  all  emergencies  in  both  peace  and  war.  It  should  at  least  be 
tried. 

And  as  the  people  of  the  United  States  are  the  only  power  that 
can  order  a  system  of  public  money,  and  as  this  is  for  the  people, 
the  people  should  vote  its  prompt  adoption  and  thus  settle  the 
troublesome  money  question  justly  and  permanently  and  reap 
the  reward  of  the  transaction. 

This  public  money  system  is  not  only  a  bank  but  a  system 
of  banks  organized  into  a  department  whose  currency  would 
supersede  our  present  greenbacks,  the  National  Bank  note,  and 
all  paper  issue  that  circulate  as  money,  and  thus  reduce  our 
eight  varieties  of  currency  to  three,  viz:  Gold,  silver  and  this 
Government  Bank  note.  This  note  being  always  at  par  would 
become  an  acceptable  substitute  for  gold  and  silver  coin.  As 
all  of  it  would  be  public  money  owned  and  loaned  by  the 
people. 

A  system  of  currency  that  promises  so  many  blessings  as  this 
does  should  surely  be  tried,  or  should  it  only  supply  a  currency 
for  home  use  just  as  good  money  is  coined  gold,  safe,  sound, 
ample  and  flexible  and  justily  distributed.  Then  it  should  be 
adopted,  even  if  all  other  blessings,  claimed  for  it  failed  to  mate- 
rialize. 

All  other  banks  and  banking  systems  with  which  we  are  ac- 
quainted contain  the  seeds  of  their  own  dissolution,  but  this 
banking  system  would  be  co-existent  with  the  life  of  the  State 
and  contains  the  principles  of  self-perfection. 

This  system  will  be  a  national  money  barometer — so  to  speak, 
which  will  tell  just  how  much  currency  the  people  keep  daily  in 
circulation,  and  give  the  information  with  as  much  certainty, 
as  a  barometer  tells  the  state  of  the  atmosphere,  or  the  thermo- 
meter tells  its  heat. 

It  will  equalize  all  its  currencies  to  just  100  cents  to  the 
dollar,  whether  they  be  made  of  two  or  more  kinds  of  material, 
as  all  will  be  thoroughly  secured,  as  well  as  a  full  legal  tender. 


A  "run"  upon  these  banks  would  make  money  plenty  and 
the  banks  rich.  The  more  money  legally  drawn  from  them  the 
richer  they  would  be.  So  we  again  repeat,  it  should  be  tried. 


CHAPTER  XXXI. 


THE  INFLEXIBILITY  OF  GREENBACKS. 

Mr.  Sherman  (member  of  Congress)  opposes  an  exclusive 
greenback  currency  as  not  "flexible  enough,"  which  is  very 
true,  as  there  is  neither  redemption,  extension  nor  contraction  in 
it  to  meet  trade  requirements,  but  the  money  of  this  proposed 
National  Banking  Department  has  those  powers  and  without 
limit.  Its  currency  would  multiply  and  circulate  as  business 
demands  increased,  and  contract  as  business  decreased,  con- 
sequently no  inflation  or  deficiency  of  money  could  ever  afflict 
the  country.  All  money  should  have  those  qualities;  otherwise 
when  the  country  is  exceedingly  prosperous,  wealth  rapidly 
multiplying,  enterprise  and  improvements  augmenting,  mines, 
factories  and  farms  producing  like  the  "seven  plentious  years," 
a  panic  is  more  likely  to  arise  then,  than  when  less  is  produced, 
if  money  is  not  flexible.  As  all  products  have  to  be  exchanged 
many  times  in  process  of  production,  transportation  and  manu- 
facture, and  paid  for  as  often,  before  they  reach  the  consumer. 
Consequently  requiring  hundreds  of  millions  more  money  to 
exchange  and  measure  such  immense  amounts  of  products  and 
move  them  to  market,  than  when  the  country  is  less  prosperous, 
hence  there  is  a  lively  demand  for  money  to  exchange  them, 
and  money  owners  fearing  loss  draw  their  money  from  the 
banks.  The  banks  being  thus  admonished  to  be  cautious,  raise 
their  discounts,  and  in  a  short  time  perhaps  call  in  their  loans 
and  refuse  all  customers.  Troubles  in  business  are  sure  to  follow; 
factories  and  enterprises  are  curtailed  or  stopped  and  their  oper- 
atives turned  into  the  streets  to  suffer,  the  products  remain  upon 
the  farm,  and  instead  of  being  used  as  food  for  the  needy  they 
are  consumed  for  fuel  or  otherwise  wasted,  and  all  for  the  want 
of  an  ample  and  flexible  currency,  that  like  Elijah's  meal  is 
always  sufficient  yet  never  a  surplus. 

The  foregoing  bill  would  supply  that  flexible  currency  and  in 
ample  amounts. 


145 

The  Bank  of  England  it  is  said  confers  many  blessings  upon 
the  English  people  and  yields  a  large  revenue  for  its  owners,  yet 
its  rigid  course  and  limited  powers  prevent  it  from  arresting 
financial  panics,  and  self  protection  compels  it  to  tighten  its  reins 
and  thereby  hastens  panics  it  is  powerless  to  prevent.  In  fact 
it  has  not  had  power  in  times  past  always  to  protect  its  own 
credit. 

At  one  time  23  years  passed  and  the  bank  could  not  redeem 
its  own  obligations,  and  its  paper  passed  at  26  per  cent,  below 
par,  and  all  because  of  its  inflexibility,  it  could  not  contract 
or  redeem.  Although  its  powers  for  good  are  many,  its  powers 
for  evil  are  also  great,  and  British  merchants  complain  of  the 
autocratic  power  with  which  the  bank  rules  the  domain  of  com- 
merce. They  assert  that  all  business  transactions  are  impeded 
by  its  varying  scale  of  discounts.  It  contracts  its  loans  when 
the  nation  most  needs  aid,  and  produces  a  constant  uncertainty  in 
the  result  of  all  business. 

Trade  and  production  should  be  free  from  all  such  restrictions 
and  the  price  of  money  should  seldom  vary,  if  it  does  it  is  no 
more  fit  to  justly  measure  values,  than  a  rubber  yard  stick 
would  be  for  a  measure  of  cloth. 

The  succession  of  a  long  series  of  years  of  financial  panic  in 
England,  is  proof  of  the  bank's  inability  to  protect  the  English 
people  from  financial  trouble.  Yet  this  is  believed  to  be  the 
most  powerful  money  bank  in  the  world,  but  its  weakness  is 
shown  when  great  financial  exigencies  are  to  be  met,  then,  if  no 
help  appears — it  is  more  harmful  than  helpful.  As  then  it  must 
protect  its  own  interests  and  to  do  so,  it  comes  down  on  its  cus- 
tomers by  raising  discounts,  calling  in  loans,  and  finally  refuses 
all  accommodations.  These  actions  of  the  great  bank  are  infec- 
tious and  other  banks  pursue  a  similar  course,  and  soon  the  busi- 
ness of  the  whole  Kingdom  is  unfavorably  effected  and  panic 
ensues,  with  its  losses,  business  depression  and  misery. 

These  evils  are  brought  upon  the  people  by  banks  striving  to 
protect  their  own  interest  which  they  can  only  do  by  oppressing 
their  own  customers  as  stated  above,  as  they  are  private  banks,  of 
issue  with  only  limited  privileges  and  an  inflexible  currency. 

This  inflexibility  of  private  currency  has  cursed  the  civilized 
world  periodically  for  ages,  by  producing  money  flurries  and 
money  panics  such  as  the  people  of  the  United  States  suffered 
in  1837,  1854,  1873,  T^93-  and  at  other  times,  the  affliction  last- 


146 

ing  several  years  each  time.  And  as  there  can  be  no  radical 
change  for  the  better  while  present  methods  obtain,  it  seems 
tne  times  are  ripe  for  a  change  of  method  from  private  banks 
to  public  banks  of  issue,  savings  and  deposits.  And  as  the  coin- 
ing, issuing  and  distributing  of  money  is  a  sovereign  prerogative, 
and  as  the  people  are  the  Sovereign,  the  bill  under  consideration 
if  enacted,  would  restore  to  the  people  their  plenary  power  of 
making,  owning  and  loaning  public  money  and  of  course  all  net 
advantage  arising  from  the  business  would  be  a  part  of  the  public 
revenue,  to  be  used  for  public  improvements,  paying  the  public 
debt,  or  expended  in  any  way  Congress  may  elect  for  the  general 
good.  This  change  would  give  our  currency  a  flexibility  and 
certainty  never  before  enjoyed  by  our  people  and  being  ample 
in  quantity,  and  always  obtainable  on  demand.  No  money  flurry 
or  money  panic  could  again  afflict  our  people.  This  money  being 
ample  in  quantity,  sound  in  quality,  always  obtainable  and 
thoroughly  secured,  will  be  all  redeemable  by  the  borrower,  the 
same  as  the  National  Bank  note  is  now  redeemed. 


CHAPTER  XXXII. 

A  SAFE  CURRENCY  MUST  BE  PUBLIC  INSTEAD  OF 

PRIVATE  MONEY— PRIVATE  MONEY  IS 

TOO  TIMID  TO  BE  SAFE. 

\o  doubt  the  establishing  of  a  just,  ample  and  efficient  money 
system  for  these  United  States  would  prove  a  greater  blessing 
to  the  people  than  any  material  thing  they  ever  contended  for 
save  it  be  their  independence. 

It  appears  those  most  loudly  demanding  a  "sound,  stable 
and  reliable  currency"  during  our  last  presidential  campaign 
are  leaders  or  followers  of  those  having  absolute  control  of  the 
Government  these  many  years.  They  have  enacted  all  laws 
affecting  our  currency  during  that  time. 

They  adopted  the  gold  standard;  demonetized  silver  coin, 
enacted  and  enforced  the  law  of  specie  payments,  reduced  the 
currency  of  the  country  by  bonding,  burning  or  otherwise  de- 
stroying over  one  billion  dollars  of  greenbacks  and  other  treasury 
notes,  stopped  the  coinage  of  silver,  and  enacted  other  laws  con- 
fessedly for  the  purpose  of  maintaining  a  sound,  stable,  honest 
and  reliable  currency,  yet  the  currency  has  not  been  reliable  or 
trustworthy,  as  it  sneaked  into  hiding  at  different  times  and 
forced  upon  the  country  money  flurries,  black  Fridays  and 
money  panics  with  all  their  trains  of  loss  and  misery.  With 
this  absolute  power  indicated  above  in  their  hands  these  many 
years,  and  their  professed  desire  for  an  ample,  sound  and  stable 
currency,  the  question  is,  why  have  they  not  had  ere  this,  the 
sound,  stable  and  reliable  currency  they  are  clamoring  for  ?  Echo 
asks  why?  The  answer  undoubtly  is  they  do  not  know  how  to 
make  such  a  currency,  or  they  are  dishonest  in  their  demands 
and  do  not  want  a  sound  and  stable  currency.  If  they  did  want 
it  and  knew  how  to  make  it,  they  could  have  had  it  long  ago 
and  thus  prevented  all  former  money  panics  and  all  future  ones. 

To  claim  we  have  had  an  ample,  sound  and  reliable  currency 


148 

is  simply  childish  viewed  in  the  light  of  the  money  flurries  and 
panics  the  country  has  suffered  the  past  sixty  years.  A  currency 
could  no  more  be  sound,  stable  and  reliable  that  was  always  hid 
or  hoarded  in  time  of  financial  trouble,  than  a  soldier  could  be 
considered  reliable  who  deserted  his  post  in  times  of  danger.  Yet 
such  has  been  the  character  of  our  currencies  for  scores  of  years. 

The  reason  why  our  money  is  so  timid  and  has  not  served 
the  people  better,  and  been  a  greater  blessing  to  mankind  is,  it  has 
been  exclusively  private  money,  and  its  withdrawal  from  circu- 
lation through  fear  of  loss  has  caused  all  our  former  money 
troubles. 

None  of  the  different  ways  proposed  to  settle  the  money  ques- 
tion by  increasing  private  money  at  public  or  private  expense  will 
ever  satisfactorily  settle  it. 

Nothing  will  prevent  money  flurries  and  money  panics  but  an 
ample  supply  of  public  money  as  an  auxiliary  to  private  money, 
owned  and  loaned  by  the  people  to  the  Government,  to  the  States 
and  to  individuals  upon  securities  of  unquestionable  value,  such 
as  bullion,  State  and  Government  bonds  at  90$  of  their  gold 
market  value,  or  upon  real  estate  at  one-half  of  its  taxable  value, 
at  a  rate  of  interest  not  to  exceed  three  per  cent,  per  annum  and 
made  always  available  whether  private  money  is,  or  is  not 
available. 

Such  a  system  is  provided  for  in  the  foregoing  bill  and  it  would 
produce  the  only  sound,  ample,  flexible  and  reliable  currency 
and  all  on  a  parity,  although  consisting  of  gold  and  silver  coin 
and  paper,  as  every  dollar  of  it  would  be  secured  by  durable  and 
valuable  property  up  to  its  full  face  value  and  the  burden  of  its 
redemption  would  be  upon  the  borrower  and  his  property,  the 
same  as  the  National  Bank  note  is  now  redeemed,  without  bur- 
dening the  Government.  A  money  thus  produced,  loaned,  secur- 
ed and  redeemed,  would  be  public  money,  always  available. 

The  above  is  the  substance  of  resolutions  upon  the  money 
question  passed  by  organized  bodies  of  men  in  times  past,  but 
unfortunately  they  were  linked  with  other  resolutions  demanding 
more  private  money  which  served  to  confuse  rather  than  en- 
lighten. Their  aim,  their  objective  point  is  evidently  public 
money,  but  as  yet  they  have  not  settled  in  their  own  minds  as  to 
what  is  public  money  and  what  is  private  money,  nor  do  they 
seem  to  realize  the  difference,  the  great  superiority  of  public 


149 

money  over  private.  As  soon  as  they  realize  these  things  they 
will  cease  demanding  more  private  money,  either  by  the  free 
coinage  of  silver,  the  further  issue  of  greenbacks  and  National 
Bank  notes,  or  by  any  other  method.  They  would  no  more  think 
of  doing  so  then;  than  they  do  now  of  demanding  our  postal 
department  to  be  administered  and  controlled  by  private  in- 
terests only.  Yet  to  compel  the  whole  business  of  this  great 
country  to  be  done  with  private  money  is  the  greater  wrong. 
Statistics  tell  us,  we  have  had  the  vast  sum  of  $1,600,000,000  of 
private  money  to  do  our  business  with  the  past  few  years.  Yet 
the  great  timidity  of  its  owners  has  prevented  its  circulation  to  a 
large  extent  during  the  past  eight  years  ending  January  ist,  1897, 
and  during  that  time  106,845  commercial  failures  took  place,  an 
average  of  13,355  yearly.  Factories  shut  down,  banks  failed, 
much  labor  unemployed,  the  industrial  arm  of  the  nation  para- 
lyzed, misery,  dispair,  violence  and  premature  death  have  stalked 
unchecked  through  the  land  and  the  end  is  not  yet.  This  could 
not  have  happened  had  public  money  been  available  as  the  above 
mentioned  bill  provides.  When  our  people  grasps  this  subject  in 
its  true  light.  Then  will  commence  the  real  struggle  of  justly, 
intelligently  and  constitutionally  settling  the  money  question. 
The  question  will  not  stand  as  it  does  now,  as  to  whether  "hard 
money,"  "gold  standard,"  "free  coinage  of  silver,"  more  "National 
Bank  notes,"  or  any  other  detail  of  the  money  question  shall  ob- 
tain; but  the  question  will  be  "shall  we  continue  the  exclusive 
use  of  private  money,  or  shall  private  money  be  supplemented  by 
public  money  ?  As  authorized  by  the  above  bill. 

This  question  being  settled  in  favor  of  public  money,  will  prac- 
tically settle  the  money  question,  and  the  above  details  at  the 
same  time. 

When  political  speakers  during  the  1896  election  campaign, 
demanded  a  sound  and  stable  currency,  they  evidently  meant  gold 
coin  or  a  currency  redeemable  in  gold,  but  they  must  use  it  as 
a  blind  only  to  carry  their  point  by  making  the  people  believe  in 
impossibilities  and  thus  obtain  their  votes,  as  they  are  too  intel- 
ligent not  to  know  that  gold  has  proved  the  most  timid,  unrelia- 
ble and  unstable  currency  known  to  civilized  man,  always  dis- 
appearing upon  the  least  suspicion  of  danger.  All  are  too  well 
acquainted  with  the  fact  stated  to  require  proof.  Besides,  these 
speakers  know  that  gold  is  too  limited  to  form  a  safe  basis  of 


currency  for  this  great  country,  even  could  its  timidity  and  in- 
stability be  eliminated.  The  millions  of  idle  workmen,  idle  ma- 
chinery, suspended  banks,  commercial  failures,  closed  factories 
and  value  shrinkage,  the  past  eight  years,  is  ample  proof  that  gold 
coin  being  a  private  money,  is  too  timid,  unreliable  and  unsafe  as 
a  base  being  too  limited.  But  the  bill  above  provides  gold  and 
silver  bullion,  Government  and  State  bonds  and  real  estate  as 
the  base  for  public  money,  surely  such  is  broad  enough,  solid 
enough,  sound,  safe  and  reliable  enough  to  sustain  as  a  base,  all 
the  currency  the  American  people  should  require  even  should 
their  number  increase  to  one  thousand  millions. 

We  have  had  a  gold  base  for  our  currency  for  a  number  of 
years,  but  where  is  it  now  ?  It  has  completely  toppled,  now  we 
have  neither  gold,  silver  or  a  paper  currency,  it  is  all  scared  out 
of  circulation  except  to  a  limited  extent.  Its  base  has  dropped 
out.  Our  Government  with  65,000,000  of  intelligent,  enterprising 
people  to  sustain  it,  is  not  able  to  get  enough  of  this  gold  base  to 
satisfy  its  necessities  only  by  borrowing  from  Europe. 

Gold  being  a  commodity,  it  is  drawn  from  us  at  times  by  na- 
tions whose  right  to  it,  and  whose  necessities  for  it  appears  greater 
than  ours.  They  take  away  our  currency  base  and  the  structure 
falls,  and  "great  is  the  fall  thereof." 

Gold  money  and  gold  redemption  is  the  most  unstable  and  un- 
reliable of  currencies,  particularly  when  deposits  are  extensively 
asked  for,  or  a  general  redemption  demanded,  then  the  gold  base 
totters. 

After  experimenting  with  the  gold  base,  and  gold  redemption 
principle  for  these  many  years,  our  present  panic  is  proof  that 
no  improvement  has  been  made  in  it  by  time  or  use.  A  question 
here  arises,  viz:  Why  have  not  those  who  are  always  contend- 
ing for  a  gold  base,  gold  redemption  and  a  gold  standard  made 
that  ample,  sound  and  stable  currency  they  are  always  demanding 
seeing  they  had  the  power  these  many,  many  years?  As  they 
have  not  done  so,  it  is  presumed  they  could  not  do  it,  or  that 
it  could  not  be  done  upon  their  methods.  Therefore  they  should 
uncomplainingly  step  aside  and  let  other  methods  be  tried. 

They  certainly  will  not  be  so  unwise  as  to  keep  trying  the  same 
plan  a  hundred  years  as  others  have  done  with  no  success  in 
sight. 

All  old  methods  having  failed  to  produce  the  currency  desired, 


and  having  by  repeated  failures  brought  loss  and  misery  upon 
the  people,  they  should  be  absolutely  and  permanently  abandoned 
and  other  methods  tried.  To  keep  peace  in  the  family  all  must 
have  equal  service.  The  miner,  the  banker,  the  manufacturer, 
the  merchant,  the  farmer,  in  fact  every  citizen  must  stand  on  an 
equal  financial  footing  before  the  law;  a  fair  field  and  equal  finan- 
cial favor  must  be  accorded  to  all  to  insure  a  permanent  peace. 
While  non-producing  bankers  are  allowed  to  borrow  money  of 
the  Government  for  i$  and  all  producing  classes  denied  that 
privilege  there  will  be  no  peace  in  this  household. 

Under  the  bill  being  considered  in  these  pages  every  citizen 
is  accorded  equal  financial  privileges.  If  the  provisions  of  this 
bill  had  been  in  operation  eight  years  ago,  the  hard  times,  with 
its  failures,  loss  and  misery  the  people  have  suffered  during  those 
years  caused  by  our  deficient  money  system  would  have  been 
avoided. 

If  our  present  crisis  could  have  been  thus  prevented,  the  prin- 
ciple is  potent  enough  to  prevent  all  future  panics,  as  then  there 
would  be  an  ample,  sound  and  stable  money  always  in  reach. 


CHAPTER  XXXIII. 

HOW  THE  BILL,  IF  ENACTED,  WOULD  KEEP  GOLD, 
SILVER  AND  PAPER  MONEY  ON  A  PARITY. 

ist.  All  gold,  silver  and  paper  currency  coined  under  that 
Act  is  made  a  full  legal  tender.  All  know  what  that  means. 

2nd.  Not  a  dollar  of  this  money  can  leave  the  banks  only  by 
being  secured  by  property  worth  more  in  United  States  gold 
coin,  than  the  face  value  of  the  money  loaned  upon  it.  Hence 
this  public  money  so  secured  could  no  more  be  depreciated  than 
could  a  man's  note  secured  by  property  worth  more  in  gold  coin 
than  the  face  of  the  note.  Just  as  much  security  is  required  to 
secure  the  paper  and  silver  money  as  the  gold.  And  the  paper 
and  silver  money  will  pay  as  much  debts,  tariffs  and  taxes  as 
would  so  many  gold  dollars.  Any  part  of  this  money  can  be 
carried  back  to  the  banks  at  any  time  and  the  banks  will  receive 
it  at  its  face  value  and  give  a  certificate  of  deposit  for  it  drawing 
an  interest. 

3rd.  United  States  gold  coin  is  made  the  standard  of  value 
which  is  one  of  the  highest  money  standards  known,  and  all 
money,  whether  gold  silver  or  paper  its  value  is  fixed  by  the  bill  to 
that  of  the  standard.  Money,  being  "sovereign  power"  its  value 
is  the  same  whether  stamped  upon  paper,  silver  or  gold. 

4th.  The  borrower  or  his  property  redeems  all  this  money. 
The  same  as  the  National  Bank  note  is  now  redeemed  by  its 
borrower  or  his  property.  Thus  the  enactment  of  this  bill  will 
entirely  relieve  the  Government  from  the  burden  of  money  re- 
demption when  the  greenbacks,  the  silver  certificates  and  other 
Government  obligations  now  existing  is  cleared  away. 

If  Congress  enacts  the  bill  above  referred  to,  then  all  our 
money  will  be  a  full  tender,  its  value  regulated  by  law  to  a  United 
States  gold  coin  standard  and  loaned  to  every  citizen  who  de- 
mands it  for  3$  interest  per  annum  and  furnishes  the  required 
security,  such  as  Government  and  State  bonds  and  bullion  at 


153 

90$  of  their  market  value  in  gold  coin,  and  real  estate  at  one-half 
of  its  taxable  value. 

This  arrangement  we  maintain  would  make  and  continue  the 
three  kinds  of  money  on  a  parity  for  home  use,  "every  dollar 
would  be  worth  as  much  as  every  other  dollar." 

This  we  believe  a  reasonable  claim,  as  the  security  taken  by 
the  Government  from  the  National  Bank  owners  to  insure  the 
full  redemption  of  the  currency  it  loans  them,  has  been  ample  to 
maintain  the  notes  at  par  with  gold  coin.  Yes  I  know  the  law 
requires  the  notes  to  be  exchangeable  at  the  bank  of  issue  for 
legal  tender  money, — coin  or  greenbacks — but  that  cuts  no 
figure  toward  keeping  them  at  par,  as  this  secured  note  never 
depreciates  even  when  the  bank  that  issued  it  fails — and  hun- 
dreds have  failed.  The  notes  are  always  worth  their  face  value  in 
legal  tender,  whether  the  bank  that  issues  them  be  alive  or  dead, 
as  they  are  all  bottomed  upon  Government  bonds  which  are  held 
by  the  Government  to  insure  the  redemption  of  the  notes,  and 
if  the  bank  be  dead  the  Government  takes  the  note  business  in 
hand,  sells  the  security  and  redeems  the  notes  at  their  face  value 
in  gold  coin.  So  it  appears  the  Government  bond  is  the  mainstay 
of  the  National  Bank  note  to  keep  it  at  par  or  redeem  it. 

It  appears  the  security  is  ample  to  keep  these  private  bank 
notes  at  par,  so  the  same  principle  of  security  is  potent  enough 
to  keep  all  public  money  loaned  by  the  above  Government  bank- 
ing department  at  par,  and  the  borrower  or  his  property — not 
the  Government — must  redeem  all  at  its  face  value.  Conse- 
quently "every  dollar  will  be  worth  as  much  as  every  other  dollar" 
for  home  use,  whether  it  be  a  gold  dollar  intrinsically  worth  100 
cents,  or  a  silver  dollar  worth  intrinsically  only  60  cents,  or  a  legal 
Under  paper  dollar  worth  nothing  intrinsically.  Their  value  is 
all  regulated  by  law  to  a  United  States  gold  coin  standard,  as 
the  bill  demands,  and  all  well  secured  as  above  stated. 

Tn  President  Cleveland's  financial  letter  written  to  Governor 
Nothern  September  25,  the  following  sentence  appears,  "I  want 
a  currency  that  is  stable  and  safe  in  the  hands  of  our  people. 
I  want  our  financial  condition  and  the  laws 
relating  to  our  currency  so  safe  and  reassuring  that  those  who 
have  money  will  spend  and  use  it  in  business  and  new  enter- 
prises, instead  of  hoarding  it.  *  *  *  I  want  a  good, 
sound  and  stable  money  and  a  condition  of  confidence  that  will 
keep  it  in  use."  The  above  shows  plainly  what  kind  of  a  cur- 

11 


154 

rency  the  President  wants,  but  the  most  essential  part  of  the 
money  question  he  has  not  touched,  viz:  How  that  particular 
kind  of  money  he  wants  can  be  produced?  Certainly  not  since 
the  formation  of  our  Government  have  we  had  such  a  money. 
''The  laws  relating  to  our  currency,"  have  not  been  "so  safe  and 
reassuring"  as  to  prevent  hoarding,  "and  a  condition  of  confi- 
dence that  will  keep  it  in  use"  has  not  appeared. 

Therefore  as  no  past  money  system  has  ever  produced  the 
currency  or  the  confidence  the  President  demands,  a  new  system 
must  be  invented  to  produce  the  kind  of  currency  the  President 
and  the  rest  of  us  want.  We  claim  the  system  outlined  above  will 
produce  the  money  and  the  "reassuring  confidence"  the  President 
demands.  And  if  it  does  not  entirely  prevent  hoarding,  it  will 
render  hoarding  harmless.  As  the  system  of  supply  and  distri- 
bution of  money  is  so  ample,  just  and  certain  that  no  amount  of 
hoarding  can  check  or  interfere  with  business,  as  private  money 
hoarding  would  only  open  the  way  for  this  banking  department  to 
loan,  and  thus  put  more  public  money  in  circulation  to  take  the 
place  of  the  private  money  hoarded. 

No  one  could  believe  a  money  famine  or  a  money  panic  such 
as  has  afflicted  our  people  the  past  eight  years  possible,  if  money 
was  always  obtainable  upon  security  and  interest  only  3$  per 
annum. 

The  above  are  some  of  the  blessings  and  fundamental  princi- 
ples of  the  system  that  will  produce  a  good,  safe,  sound,  stable 
money,  ample  in  amount,  never  too  much  or  too  little  always 
obtainable,  with  "a  reassuring  condition  of  confidence  that  will 
keep  it  in  use."  No  one  will  care  to  hoard  it  if  they  did  it  would 
not  check  business,  as  there  would  be  an  ample  supply  always 
within  reach  of  those  holding  the  security. 

The  administration  of  the  system  above  noted  is  by  a  Govern- 
ment banking  department. 

These  banks  will  be  banks  of  savings  and  deposit  as  well  as 
banks  of  loaning  and  redemption,  none  of  them  can  ever  be 
broken,  consequently  all  who  deposit  in  them  will  get  their  money 
returned  with  an  interest  upon  demand  with  no  fear  of  loss. 

One  thing  should  yet  be  noted,  viz:  This  is  a  Government 
revenue  measure  as  well  as  a  money  system.  The  Government 
realization  from  it  is  variously  estimated  from  $40,000,000  to 
$200,000,000  annually,  a  sum  not  to  be  despised  at  this  time  even 
l>y  as  wealthy  a  banker  as  Uncle  Sam. 


155 

The  greatest  advantage  this  measure  would  be  to  the  country 
would  be  its  supplying  the  people  with  enough  good  money  to 
keep  the  producing  and  developing  forces  of  the  country  in 
healthy  action  all  the  time.  The  next  greatest  advantage  would 
be  reducing  the  average  interest  for  the  use  of  money  from  7$ 
per  annum  to  one-half  that  sum,  or  less.  Other  numerous  ad- 
vantages are  summed  up  elsewhere. 

The  enactment  of  the  bill  referred  to,  would  be  the  gospel  of 
financial  salvation  to  our  people  and  to  our  Government,  and 
should  by  all  means  be  enacted.  It  would  be  the  most  valuable 
and  the  most  important  bill  in  a  financial  sense  ever  before  Con- 
gress. As  preventing  money  famine  and  money  panics  with  all 
their  loss  and  misery,  and  equalizing  the  paving  power  of  all  our 
money  without  a  gold  redemption  are  of  themselves  no  small 
items,  and  the  Republic  of  the  United  States  being  a  joint  stock 
corporation,  every  citizen — poor  or  rich — would  be  stockhold- 
ers— so  to  speak — in  this,  the  richest  and  most  important  banking 
institution  on  earth. 


CHAPTER  XXXIV. 


OUR  CURRENCY  WAR. 

War  has  been  declared  by  currency  reformers  against  our  pres- 
ent money  system.  The  hosts  are  being  marshalled  for  the  fray, 
excitement  and  expectation  are  on  a  high  key,  and  the  demand 
for  a  change  urgent,  being  pressed  on  by  public  opinion  and  by 
loss  and  misery  now  being  suffered  by  our  people  and  also  by 
the  financial  humiliation  of  our  Government  brought  on  them, 
and  it,  by  our  present  vicious  money  system. 

The  decree  has  gone  forth,  that  the  old  private  currency  system 
must  and  shall  be  abolished  and  a  system  of  public  money  sub- 
stituted, a  system  that  will  supply  a  public  money  ample  for  all 
business,  made  of  gold,  silver  and  paper,  every  dollar  of  it  worth 
as  much  as  every  other  dollar,  and  always  obtainable  upon 
security,  such  as  Government  and  State  bonds  and  bullion  at 
90$  of  their  market  value  in  United  States  gold  coin,  and  real 
estate  at  not  more  than  one-half  of  its  taxable  value.  The  same 
to  be  a  full  legal  tender,  safe,  sound  and  flexible,  owned  and 
loaned  by  the  people  to  the  Government,  to  the  States  and  to 
individuals,  at  an  interest  not  to  exceed  3^  per  annum  and  admin- 
istered through  a  banking  department. 

Said  money  to  be  received  on  deposit  by  the  department  banks, 
and  redeemed  by  the  borrozver  the  same  as  the  National  Bank 
note  is  now  redeemed.  Thus  entirely  relieving  the  Government 
from  the  burden  of  money  redemption,  so  far  at  least  as  public 
money  circulates.  Such  in  substance  is  the  aim,  desire  and  de- 
mand of  money  reformers  to  replace  the  old  troublesome  private 
money  systems.  This  at  first  may  look  difficult,  but  if  it  is  under- 
stood and  administered  through  a  banking  department  it  will 
be  seen  to  be  easily  understood,  plain,  constitutional,  practical, 
lasting,  just  and  complete.  Surely  such  a  reform  is  a  worthy 
object  and  should  claim  the  attention  and  assistance  of  the 
American  people  to  have  the  bill  enacted.  As  the  thoughtful 
may  perceive,  that  if  the  money  system  outlined  above  had  been 


in  operation  the  past  eight  years,  the  $12,000,000,000  of  wealth 
said  to  have  been  wiped  out  of  existence  by  the  money  famine, 
the  country  has  been  passing  through  the  past  eight  years  would 
have  been  saved.  You  don't  mean  to  say  the  enactment  of  your 
bill  creating  public  money  would  have  saved  the  American  people 
twelve  billion  dollars  the  past  eight  years?  Approximately  that  is 
it,  but  there  are  other  advantages  besides  financial  losses  to  come 
into  the  reckoning.  What  I  do  exactly  mean  is,  all  loss  by  de- 
preciation of  property,  by  idle  labor,  idle  capital — railroads, 
factories,  mines,  money,  etc.,  all  loss  arising  from  business  de- 
pression and  commercial  failures,  all  heartache  and  headache,  all 
hunger  and  nakedness,  all  suicides  and  death  brought  on  the 
\\rak  from  exposure,  and  all  misery  of  whatever  kind  forced 
upon  the  country  by  the  money  famine,  money  panic  and  business 
depression  the  past  eight  years,  would  have  been  entirely  pre- 
vented had  the  bill  above  referred  to  creating  public  money  been 
enacted  in  1888. 

I  don't  wish  to  be  understood  as  saying  there  would  have 
been  no  loss  or  misery  in  the  country  had  the  bill  been  then 
enacted,  I  only  claim  that  all  loss  and  misery  brought  upon  the 
country  by  the  money  famine  and  panic  the  past  eight  years, 
would  have  been  prevented,  had  the  bill  been  then  enacted,  I 
will  say  further,  if  the  bill  was  enacted  now  it  would  promptly 
restore  the  country  to  prosperity,  and  prevent  all  future  money 
famines  and  money  panics.  Not  only  so,  but  it  would  enable  the 
country  to  recover  the  billions  of  wealth  it  lost  by  the  famine  and 
in  much  less  time  than  it  was  loosing  it,  as  then  the  country  would 
have  an  ample  supply  of  business  life  blood  and  prosperity,  a  sure 
foundation  upon  which  to  rest. 

The  free  and  unlimited  coinage  of  silver  will  corne  no  nearer 
settling  the  money  question  or  preventing  money  famines,  and 
money  panics,  or  supplying  the  money  above  demanded,  than  did 
the  free  coinage  of  gold  or  the  issue  of  National  Bank  notes,  as 
all  are  private  money — Shylock  money  demanding  usury — some- 
times hoarded,  always  manipulated  by  the  money  power,  always 
giving  trouble,  money  flurries,  money  famines  and  money  panics 
are  its  legitimate  fruits,  and  as  nothing  better  can  be  hoped  for 
from  such  a  system  in  the  future,  a  change  is  demanded  to  the 
system  of  public  money  above  indicated,  as  then  money  would 
always  be  in  reach  of  the  business  community  at  an  approximate 
equitable  interest  of  yf  per  annum. 


158 

An  important  question,  What  political  party  will  enact  the 
necessary  laws  to  give  us  the  money  above  demanded?  Surely 
the  Democrats  will  not  do  it,  as  they  have  had  many  opportunities 
to  have  enacted  such  a  law  the  past  hundred  years,  but  they  did 
not  do  it.  They  charge  to  the  Republicans — and  justly  so — the 
hard  times  and  money  panic  brought  upon  the  country  by  des- 
troying the  greenbacks  and  other  treasury  notes  in  1871,  1872 
and  1873,  also  f°r  the  dull  times  and  failures  in  1889,  1890,  1891 
and  1892,  brought  on  they  charge  by  a  "high  protective  tariff." 
They  succeeded  in  making  the  people  believe  this  imaginary 
statement  and  in  consequence  the  Democrats  were  hoisted  again 
to  power  in  1893.  Since  then  failures  multiplied  and  times  grew 
rapidly  wTorse,  yet  nothing  was  done  by  them  that  relieved  the 
situation. 

The  Republicans  are  no  more  to  be  relied  upon  for  enacting 
a  law  that  will  give  the  country  an  ample,  safe,  sound  and  flexible 
currency  than  the  Democrats.  They  charge  our  present  financial 
and  business  depression  to  the  Democratic  "Tariff  Agitation," 
yet  the  Republicans  enacted  all  the  laws  that  brought  on  the 
depression  and  the  laws  are  yet  in  force.  The  Democrats  formu- 
lated the  American  money  policy  almost  exclusively  from  the 
formation  of  our  Government  to  1862  and  money  flurries,  famines 
and  panics  followed  frequently  as  a  natural  consequence  during 
these  many  years.  The  Whigs  and  other  parties  that  held  power 
during  those  years  followed  the  Democratic  money  policy  of  pro- 
viding only  private  money  for  all  business  during  those  years. 
Since  1861  the  Republicans  have  enacted  all  our  money  and  cur- 
rency laws,  and  it  was  the  effect  of  those  laws  that  brought  on 
the  1873  panic,  and  under  and  by  virtue  of  those  laws  we  are 
now  suffering  another  money  famine,  which  began  to  be  seriously 
felt  in  1889  with  10,882  commercial  failures;  1890,  10,907;  1891, 
12,273;  1892,  over  12,000;  1893,  16,650;  1894,  15,660;  1895,  13,- 
197;  1896,  15,286;  107,939  commercial  failures  in  eight  years 
a  formidable  list  truly,  46,156  during  President  Harrison's  "pros- 
perous term"  as  the  Republicans  claim. 

The  four  years  of  President  Cleveland's  second  term  60,783. 
Yet  nothing  was  done  by  either  party  to  check  the  country's  down 
grade.  Each  party  blaming  the  other  instead  of  confessing  their 
own  short  comings  and  endeavoring  to  stop  the  money  famine. 
If  the  Republicans  had  enacted  a  law  authorizing  the  making 
and  distributing  public  money  direct  to  the  people  in  1889  the 


159 

loss  and  misery  above  referred  to,  would  have  been  only  normal 
—being  only  a  few  hundred  failures  instead  of  double  that  num- 
ber of  thousands.  And  instead  of  the  loss  of  $12,000,000,000  by 
idle  labor,  idle  machinery,  idle  money  and  the  great  depreciation 
of  values  the  past  eight  years  $2,000,000,000  a  year  would  have 
been  added  to  the  wealth  of  the  country  during  the  time,  as  that 
is  about  the  normal  growth  of  the  country  in  prosperous  years. 
So  instead  of  a  $12,000.000,000  depreciation,  we  would  have  had 
an  increase  sufficient  to  make  $20,000,000,000  more  wealth  than 
can  be  found  in  the  nation  today. 

This  is  too  much  of  a  loss  to  suffer  from  blind  or  selfish  law 
makers.  We  read  "The  wisdom  of  your  wise  men  shall  perish 
and  the  understanding  of  the  prudent  shall  be  hid,"  because  they 
trust  to  their  own  wisdom  and  make  gold  their  god. 

As  nothing  can  be  hoped  for  in  the  line  of  public  money  from. 
cither  of  the  old  parties  our  only  trust  must  center  in  the  Populist 
party,  the  Prohibition  party,  the  Farmers'  Alliance  and  the  or- 
ganized bodies  of  workingmen,  as  they  are  all  demanding  public 
money  and  are  sufficiently  numerous  (if  united),  to  enforce  their 
demands.  But  unfortunately  they  are  not  united  in  action, 
although  all  demand  public  money,  and  in  addition  each  party 
demands  some  minor  matters — nonessentials  so  to  speak — which 
other  parties  object  to.  Thus  they  keep  the  question  of  public 
money  which  all  demand  and  upon  which  the  welfare  of  all  de- 
pends, in  obeyance,  while  they  disagree  and  dispute  about  trifles, 
such  as  "free  coinage  of  silver,"  "double  standard,"  "more  green- 
backs," and  other  modes  for  increasing  private  money.  When 
public  money  would  supersede  all  these  by  producing  something 
better.  It  is  well  known  that  only  a  small  part  of  the  $1,600,000,- 
ooo  of  private  money  (we  had  no  other)  now  in  the  country  could 
be  circulated  the  past  eight  years,  hence  originates  the  money 
famine  now  oppressing  the  country.  A  few  score  million  more  of 
private  money  could  not  have  effected  business  but  little,  as  $i,- 
800,000,000  could  have  been  hoarded  by  its  owners  as  readily  as 
$1,600,000,000  was.  A  well  spring  of  public  money  always  open  for 
business,  is  the  only  remedy  for  money  flurries,  money  famines 
and  money  panics.  If  it  did  not  entirely  prevent  hoarding,  it 
would  render  hoarding  harmless,  and  perhaps  turn  the  curse  of 
hoarding  into  a  blessing  by  enabling  the  banking  department  to 
loan  more  public  money  to  take  the  place  of  the  private  money 


i6o 

hoarded.  Public  money  being  always  available  as  stated  above 
would  at  once  lift  the  vail,  restore  confidence,  and  insure  perma- 
nent prosperity,  the  object  sought,  and  wisdom  would  dictate  that 
all  currency  reformers  not  being  able  to  effect  anything  alone, 
should  lay  aside  all  minor  matters  and  unite  to  settle  the  money 
question  beyond  a  peradventure,  the  old  parties  will  not  do  it. 

Free  silver  coinage  means  more  silver  certificates  which  will 
increase  the  power  of  conspirators  to  pump  gold  from  the  Gov- 
ernment Treasury  and  force  another  issue  of  gold  bonds  to  further 
enslave  the  American  people.  We  must  reflect,  that  the  free 
coinage  of  silver  produces  private  money  and  millionaires,  more 
millionaires  in  fact  than  was  ever  created  by  any  sovereign  law 
in  this  country,  which  a  little  reflection  shows,  viz:  The  silver 
bullion  in  a  legal  tender  dollar  is  now  worth  only  sixty  cents,  if 
every  sixty  cents  of  the  $500,000,000  worth  of  silver  bullion  now 
in  possession  of  the  wealthy  was  coined  into  a  legal  tender  dollar, 
it  would  add  $200,000,000  to  the  wealth  of  its  owners  by  national 
law,  enough  to  make  200  millionaires,  and  this  would  be  added 
to  yearly.  I  don't  believe  creating  millionaires  by  national  law 
was  intended  by  the  makers  of  the  Omaha  platform  or  by  any 
of  the  currency  reformers  above  referred  to.  Yet  the  free  coinage 
of  silver  means  that,  as  well  as  more  silver  certificates  to  burden 
the  Government.  Any  political  party  guilty  of  creating  million- 
aires by  national  law,  either  by  free  coinage  of  silver  or  any  other 
way,  at  this  particular  upheaval  of  politics,  will  dig  its  political 
grave  by  so  doing  and  sure  to  fall  into  it. 

If  silver  is  coined  and  distributed  as  private  money  it  will  not 
circulate  any  surer  than  other  private  money,  but  silver  may  be 
coined  and  distributed  as  public  money — if  wanted — then  the  peo- 
ple would  reap  the  advantage  of  coinage,  the  money  would  cir- 
culate and  no  millionaires  would  be  produced  by  the  law,  or 
more  certificates  issued  to  draw  gold  from  the  Treasury.  If  the 
people  did  not  want  to  use  the  silver  on  account  of  its  bulk,  it 
should  not  be  coined  and  the  people  could  use  the  Government 
banking  department  note,  instead  of  the  silver  certificate,  as  that 
would  be  a  full  tender  amply  secured. 

It  is  quite  evident  the  American  people  would  not  vote  for 
the  free  coinage  of  silver,  if  they  fully  comprehended  the  evils 
likely  to  arise  from  it,  in  fact  they  did  vote  against  it  last  election. 

Public  monev,  loaned  bv  Government  banks  and  Government 


banks  of  savings,  would  be  something  that  should  enthuse  every 
currency  reformer. 

When  the  demand  for  more  private  money  ceases,  and  public 
money  and  Government  banks  alone  demanded,  our  currency  war 
will  be  drawing  to  a  close.  When  public  money  is  inaugurated 
and  administered  through  a  banking  department — as  the  above 
bill  provides — the  war  will  be  over,  and  the  money  question  will 
be  constitutionally,  justly  and  permanently  settled.  Then  private 
bankers  would  no  more  think  of  disrupting  our  public  money 
system,  than  express  companies  now  do  of  disrupting  our  postal 
system.  Then  no  more  money  famines  or  money  panics. 

Then  the  people's  banking  department  would  be  the  money 
power  of  this  country  if  not  of  the  world.  Then  our  Government 
would  no  longer  be  compelled  to  beg  upon  its  bended  knees 
as  it  were,  of  private  bankers  both  at  home  and  abroad  for  a  loan 
of  gold  to  enable  it  to  meet  its  obligations,  as  this  banking  depart- 
ment could  supply  its  every  want,  as  this  banking  system  would 
be  the  richest,  the  most  powerful  and  important  bank  ever  known, 
backed  as  it  would  be  by  $70,000,000,000  of  wealth  and  70,000,- 
ooo  of  people  and  all  stockholders  receiving  its  yearly  net  income 
to  pay  their  Government's  expenses. 

Reader  think  of  that,  a  bank  of  issue,  of  loaning,  of  redemp- 
tion and  deposit  with  $70,000,000,000  of  wealth  and  70,000,000 
of  people  to  support  it.  Think  again,  how  insignificant — by  com- 
parison— would  appear  the  present  Banks  of  England,  France, 
Germany  and  the  Rothschilds.  Besides  this  bank  would  work 
without  selfishness  for  the  good  of  all  the  people,  while  all  other 
banks  work  for  the  benefit  of  their  few  owners.  The  currency 
war  would  be  ended. 


CHAPTER  XXXV. 


PUBLIC  AND  PRIVATE  MONEY. 

In  a  former  chapter  I  have  treated  the  above  subject  and  stated 
I  had  discovered  and  numbered  many  blessings  to  be  enjoyed 
by  the  people  and  by  the  Government  through  the  use  of  public 
money  that  cannot  be  enjoyed  by  the  exclusive  use  of  private 
money  and  that  new  blessings  were  discovered  as  I  searched 
more  deeply  into  the  subject. 

The  subject  of  public  money,  is  so  overtowering  important  as 
I  view  it,  and  but  few  writers  if  any  have  ever  attempted  to  show 
its  advantages  although  demanding  that  the  Government  loan 
money  direct  to  the  people.  To  make  its  advantages  plain  is 
my  only  excuse  for  presenting  it  so  often  and  re-itterating  solid 
facts  that  every  American  citizen  should  understand. 

If  public  money  could  be  secured  and  circulated  as  demanded 
in  these  pages,  Shylock  would  awaken  to  the  fact,  the  days  of 
usury  were  past,  and  that  great  fortunes  could  not  be  so  easily 
made  as  formerly  from  small  sums  of  money  at  usury.  With 
public  money  as  demanded,  business  and  enterprise  could  raise 
their  ambitious  heads  once  more  with  the  full  assurance  the  busi- 
ness of  the  country  would  no  more  be  prostrated  by  the  with- 
drawal and  hoarding  of  private  money. 

The  possibilities  of  public  money  would  awaken  in  the  hearts 
of  the  people  new  courage,  by  opening  avenues  of  prosperity  be- 
fore them,  producing  for  them  a  happiness  to  contemplate  and 
enjoy. 

We  believe  no  one  disputes  the  fact  that  the  non-producing 
class  is  sustained  from  the  wealth  produced  by  labor  and  taken 
from  labor  mainly  by  scheming  and  manipulation  of  private 
money. 

This  abomination  is  encouraged  by  the  Government  compelling 
all  to  use  private  money  or  none.  Thus  the  Government  assists 
in  sustaining  this  iniquitous  monopoly.  All  may  see  how  the 


'63 

evils  growing  out  of  this  private  money  business  would  be  pre- 
vented by  the  organization  of  a  Government  banking  department 
and  the  use  of  public  money.  The  banks  composing  the  depart- 
ment would  be  banks  of  savings  as  well  as  banks  of  loaning, 
and  if  the  billions  of  private  money  now  deposited  in  private 
banks  was  deposited  in  these  Government  banks  it  would  be 
safe,  and  the  Government  would  not  use  it  for  the  unholy  pur- 
pose of  preying  upon  the  producers  by  demanding  high  or 
usurious  interest,  or  by  foreclosing  and  getting  possession  of 
property  at  less  than  its  known  value.  In  fact  there  would  be 
by  comparison  but  few  foreclosures  under  a  public  money  sys- 
tem, as  the  interest  being  low  no  foreclosure  would  take  place  as 
long  as  the  interest  was  promptly  paid. 

It  seems  as  much  the  constitutional  duty  of  Congress  to  ''coin 
money,  regulate  the  value  thereof,"  as  it  is  to  "establish  post 
offices  and  post  roads."  The  first  evidently  means  the  making 
arid  distributing  direct  to  the  people  upon  security,  enough  money 
for  public  use,  as  much  as  the  latter  does  the  collecting,  carrying 
and  distributing  mail  matter  for  public  good.  What  a  blessing 
to  the  people  is  the  postal  department!  A  Government  banking 
department  for  distributing  public  money  direct  to  the  people, 
would  be  a  much  greater  blessing,  if  properly  instituted,  as  under 
our  civilization  all  things  are  done  with  money,  we  must  have 
money  before  we  can  have  food,  clothing  and  habitations,  with 
money  all  wealth  is  produced  and  all  exchanges  made,  hence  it 
should  always  be  available  upon  demand  to  those  complying 
with  the  law  when  making  the  demand  and  at  an  equitable  rate 
of  interest.  Public  money  would  fill  the  bill,  but  private  money 
is  not  reliable,  as  double  or  treble  an  equitable  interest  is  re- 
quired by  its  owners,  besides  private  money  is  not  always  avail- 
able, as  the  history  of  the  loss  and  suffering  the  past  eight  years 
fully  attest. 

Undoubtly  Congress  has  as  much  right  to  farm  out  the  col- 
lecting, carrying  and  distributing  the  mail  to  an  express  syndicate 
and  give  it  the  right  to  charge  little  or  much  for  the  service,  as 
it  has  to  farm  out  the  issue  and  distribution  of  money  exclusively 
to  private  parties,  with  the  liberty  to  distribute  much  or  little, 
as  suited  their  fancy,  and  charge  much  for  its  use  as  is  now 
done. 

Money  is  a  product  of  sovereign  law,  when  stamped  upon 
material  it  represents  sovereign  power,  and  to  all  intents  and  pur- 


164 

poses  it  is,  or  should  be  public  money  and  would  remain  so,  if 
the  sovereign  distributes  it  by  loaning.  Distributing  it  in  any 
other  way,  it  ceases  to  be  public  money,  the  owner — the  sovereign 
—looses  all  ownership  in  it.  If  the  sovereign  uses  it  as  it  does 
other  revenues,  then  it  becomes  private  money  and  cannot  be 
distributed  only  as  its  owner  wills.  Now,  reader,  seeing  the 
United  States  has  tried  private  money  exclusively  the  past  cen- 
tury, and  in  consequence,  its  people  have  suffered  untold  and  un- 
numbered afflictions  every  few  years,  would  it  not  be  wise  to 
try  for  once,  a  public  money,  as  an  auxiliary  to  private  money? 
Then  if  private  money  owners  from  any  cause  refused  loans,  no 
trouble  could  arise  in  business  circles  on  account  of  money 
scarcity,  as  the  sovereign  would  be  prepared  at  all  times  to  supply 
every  legitimate  money  demand. 

Thus  would  public  money  be  supplied  straight  to  those  wanting 
to  use  it,  without  the  intervention  of  banking  syndicates,  free 
coinage  of  gold  and  silver,  the  issue  of  more  greenbacks,  silver 
certificates,  National  Bank  notes  or  any  other  kind  of  private 
currency. 

Greenback  and  all  other  paper  issues  of  private  currency,  re- 
quires a  gold  redemption,  which  breaks  banks  and  embarrasses 
the  Government  to  obtain  the  gold.  Public  money  may  also  re- 
quire redemption,  but  it  is  the  borrower  or  his  property,  not  the 
Government  who  redeems  it,  the  same  as  the  National  Bank  note 
is  now  redeemed  by  the  banker  who  borrows  it,  thus  relieving 
the  Government  of  the  burden  of  exchanging  gold  for  green- 
backs, or  any  kind  of  private  currency  for  any  other  kind  of 
private  currency.  There  can  only  be  two  systems  of  money, 
public  and  private.  Private  money  belongs  to  individuals,  to 
States,  countries,  municipal  corporations,  bankers  and  other  pri- 
vate institutions,  whereas  public  money  belongs  to  all  the  people, 
and  their  agent,  the  Government  distributes  it  according  to 
law,  to  individuals,  to  bankers,  to  farmers,  to  manufacturers,  to 
States  and  to  every  citizen  upon  demand  if  accompanied  by  the 
required  security. 

As  observed  above,  no  money  famine  or  money  panic  would 
be  possible  with  a  public  money  system  in  operation;  there  would 
be  no  wrangling  over  the  different  material  that  bears  about  the 
money  stamp.  There  would  be  no  "dishonest  money,"  no  "cheap 
money,"  the  paper  and  silver  money  would  be  as  valuable  as  the 
gold  coin  for  all  domestic  money  purposes,  all  would  be  honest 


money  amply  secured  and  of  course  a  full  representative  of 
value,  made  of  gold,  silver  and  paper.  Gold  would  be  the  money 
"standard/'  and  the  value  of  all  money  would  be  "regulated"  to 
that  of  the  standard  by  the  law  that  creates  all  money  and  fixes 
its  value. 

Under  our  present  money  system  all  borrowers  must  rely  on 
private  money  (there  being  no  other)  and  if  its  owners  refuse 
loans,  business,  the  people  and  the  Government  must  suffer  as 
has  been  the  case  the  past  eight  years.  But  under  the  within 
public  money  system  nothing  like  that  could  happen,  as  every 
borrower  who  legally  applied  to  a  Government  bank  for  money, 
would  surely  be  supplied  at  an  interest  of  3^  per  annum.  No 
Government  bank  official  could  refuse  loans. 

Public  money  has  been  long  discussed  by  able  statesmen  and 
demanded  by  many  organized  bodies  of  men  such  as  the  "Popu- 
lists," the  "Farmers'  Alliance,"  the  "Grangers"  some  temper- 
ance and  labor  organizations  and  others,  yet  it  has  never  been 
tried  at  least  in  these  States. 

Jefferson,  in  a  letter  written  to  John  W.  Epps  in  1814,  said, 
"The  question  will  be  asked  and  ought  to  be  looked  at,  'What 
is  to  be  the  course  if  loans  cannot  be  obtained  ?'  There  is  but  one 
—bank  paper  must  be  suppressed  and  the  circulating  medium 
must  be  restored  to  the  nation,  to  whom  it  belongs.  It  is  the 
only  fund  on  which  they  can  rely  for  loans,  it  is  the  only  resource 
which  can  never  fail,  and  it  is  an  abundant  one  for  every  neces- 
sary purpose." 

I  could  refer  to  many  other  worthies  who  favored  public  money 
the  past  hundred  years,  but  I  forbare,  I  will  observe  however, 
that  public  money  in  shape  of  a  bill  was  before  the  last  two 
monarchial  legislatures  of  these  Islands.  It  passed  the  ordeal  of 
four  committees,  was  discussed  three  and  a  half  days  in  commit- 
tee of  the  whole  house.  Every  motion  for  indefinite  postpone- 
ment was  defeated,  all  arguments  urged  against  it  were  answered 
by  its  friends,  except,  I  regret  to  say  the  last,  the  golden  argu- 
ment, which  proved  very  effective  and  defeated  the  bill. 

This  I  believe  was  the  first  time  a  bill  for  creating  public  money, 
was  ever  earnestly  discussed  by  a  legislature  either  here  or  in 
America. 

The  bill  was  defeated,  and  the  Government  both  before  and 
since  has  been  compelled  to  borrow  foreign  money  for  its  use, 
when  at  that  time  it  had  as  much  authoritv  to  make  monev,  as 


i66 

other  Governments  had  to  make  the  money  it  borrowed,  "The 
borrower  is  servant  to  the  lender,"  so  by  the  defeat  of  that  bill 
the  people  of  these  Islands  have  shown  themselves  willing  ser- 
vants to  old  traditions,  rather  than  assert  their  independence  and 
have  their  Government  made  the  money  power  of  these  Islands, 
which  it  would  have  been  had  the  principles  of  that  bill  been 
carried  into  effect.  But  instead  of  financial  independence,  our 
Island  Government  has  been,  and  must  always  be  upon  its  knees, 
scringing-  and  humbly  begging  the  powers  for  money  and  if  it 
gets  it,  it  must  be  at  heavy  expense,  thus  submitting  to  be  a 
willing  servant  to  the  money  power,  instead  of  the  master  as  it 
should  have  been.  The  way  was  clear. 

The  facts  stated  in  last  paragraph  is  as  applicable  to  the  Gov- 
ernment and  people  of  the  United  States  as  they  are  to  the 
people  of  these  Islands.  They  should  be  as  independent  finan- 
cially of  other  countries  and  loaners  of  private  money,  as  they 
are  in  their  postal  matters  or  any  other  Government  function. 
Which  they  can  surely  be,  by  enacting  the  bill  above  referred  to. 
But  a  bill  for  the  creating  of  public  money  as  this  would  be,  will 
never  be  enacted  by  either  of  the  dominant  political  parties,  with- 
out a  great  revolution  in  the  sentiment  of  the  leaders  and  abettors 
of  those  parties. 

The  Democrats  under  Mr.  Cleveland  declared  for  private 
money  only  and  less  of  it,  which  they  indicated  by  repealing  the 
Sherman  Silver  Law,  as  by  so  doing  they  deprived  the  people  of 
$54,000,000  of  new  money  every  year  since,  and  .this  at  a  time 
when  business  and  the  producing  forces  of  the  country  were 
earnestly  clamoring  for  more  money.  Again,  the  Democrats 
under  Mr.  Cleveland  repealed  the  McKinley  Tariff  Act,  which 
also  proved  a  blunder.  Instead  of  these  blunders  restoring 
prosperity  as  was  promised,  they  not  only  injured  the  business 
of  the  country,  but  crippled  the  Government,  compelling  it  to 
borrow  $262,000,000  in  time  of  peace  to  maintain  its  credit,  and 
pay  its  running  expenses. 

The  election  of  Republicans  means  a  continuance  of  the  private 
money  system  that  has  cursed  the  country  every  few  years  since 
its  first  formation,  with  Black  Fridays,  money  famines,  and  money 
panics,  forcing  stagnation  of  business,  depreciation  in  the  value 
of  property,  idleness,  physical  and  mental  suffering,  heartache 
and  suicide. 

All  know  these  evils  afflict  our  country  every  few  years,  hence 


i67 

I  submit,  that  wisdom,  statemanship,  and  honest  purpose  should 
influence  the  leaders  and  manipulators  of  political  parties,  to  call 
a  halt  and  take  counsel,  as  to  what  should  be  done,  to  relieve 
the  people  and  the  Government  of  this  periodical  affliction  which 
shortsighted  man  has  brought  upon  himself  and  the  people,  and  if 
nothing  could  be  formulated  by  them  after  consultation  except 
to  continue  in  the  old  beaten  track,  strewn  with  money  famines, 
lost  fortunes,  blasted  hopes,  moans  and  sighs  of  misery  from  half 
clad,  half  fed  men,  women  and  children  and  the  bones  of  dead 
men,  women  and  children  who  have  fallen  by  the  way  from  this 
cause  of  money  famine  all  along  the  ages.  Then  I  further  sub- 
mit, that  a  President  or  Congressman  who  does  not  know  what 
laws  should  be  repealed  that  are  working  against  the  prosperity 
of  our  country,  and  what  laws  should  be  enacted  for  the  general 
good,  are  blind  leaders  and  the  country  must  continue  to  suffer 
under  such  unstatesmanlike  leadership  in  the  future,  as  it  has  in 
the  past. 

Yes,  we  know  the  Republican  party  proposes  to  restore  a  high 
tariff  for  curing  our  present  evils  and  thus  restore  prosperity  to 
the  country,  but  as  the  1893  panic  took  place  under  the  McKinley 
Tariff  which  averaged  58^,  we  can't  believe  restoring  that  tariff 
would  restore  prosperity  or  have  any  different  effect  than  it  had 
in  1893.  We  have  had  money  panics  under  both  high  and  low 
tariff,  panics  under  free  and  unlimited  coinage  of  gold  and  silver, 
panics  under  bimetallism  and  panics  under  an  exclusive  gold 
standard.  Which  is  proof,  that  money  famine  and  money  panics 
never  was  produced  or  prevented  by  any  of  the  above  devices, 
but  all  money  panics  to  date,  have  been  caused  by  our  system  of 
private  money,  and  reasoning  from  the  past  just  so  long  as  the 
United  States  adheres  to  its  exclusive  use  of  private  money,  just 
so  long  will  it  be  afflicted  periodically  with  money  panics.  Pub- 
lic money  is  the  only  sure  preventative,  no  money  panic  could 
originate  with  public  money  always  available  at  3$  per  annum 
interest,  as  then,  if  public  money  did  not  drive  all  fear  of  loss 
from  private  money  owners,  the  Government  could  supply  every 
demand  as  fast  as  private  money  should  be  withdrawn.  Thus 
ample  money  could  always  be  kept  in  production  and  trade  chan- 
nels, and  as  money  panics  never  occur  when  there  is  a  full  supply 
of  money  in  circulation,  it  may  readily  be  seen  that  it  is  public 
money, — not  free  coinage  of  silver,  or  high  or  low  tariff — that  will 


i68 

effectually  prevent  money  panics,  by  supplying  plenty  of  money, 
an  abundance  of  money,  which  produces  enterprise,  prosperity 
and  progress,  there  is  no  sort  of  doubt  about  that  now. 


CHAPTER  XXXVI. 

MONEY     MONOPOLY— ITS     PRACTICAL     EFFECTS, 
GOVERNMENT  BANKING  DEPARTMENT. 

We  hear  much  in  these  days  about  monopolies,  and  much 
truth  has  been  written  upon  the  subject.  Every  reflecting  mind 
must  acknowledge  that  the  most  powerful  monopolies  in  America 
are  the  money  institutions  of  the  country. 

How  comparatively  small  appears  a  sugar  monopoly  of  $80,- 
000,000,  or  an  oil  monopoly  of  $100,000,000  or  even  a  railroad 
monopoly  of  $500,000,000  of  property  under  its  direction,  com- 
pared to  a  money  monopoly  with  thousands  of  million  of  money 
under  its  control.  They  exert  more  power  for  weal  or  woe,  than 
all  other  monopolies.  We  cannot  blame  them  as  the  laws  are 
framed  delegating  that  power  to  them.  And  man's  selfishness 
prompts  him  to  use  for  his  own  advancement  the  powers  placed 
in  his  hands. 

The  evils  arising  from  the  money  famine  the  past  eight  years, 
it  is  said,  entailed  a  direct  loss  upon  the  Government  sufficient  to 
build  three  Pacific  Railroads.  The  Government  loss  is  small  in 
comparison  to  the  $12,000,000,000  loss  suffered  by  the  people 
through  depreciation  of  property  values,  and  other  causes  during 
that  time,  and  that  is  only  one  of  the  many  losses  the  country 
has  suffered  through  the  monopoly  of  private  money  since  its 
first  formation. 

The  monopoly  of  the  money  of  a  country  should  not  be  held 
by  any  power  less  selfish  and  with  less  responsibility  than  the 
Government,  nor  should  the  Government  hold  such  tyrannical 
power.  It  should  make  all  the  coin  and  issue  all  "Bills  of 
Credit,"  but  when  a  legal  demand  is  made  for  money  at  the 
Government  banks  the  law  must  be  so  framed,  the  borrower  can- 
not be  denied.  The  ability  to  secure  the  money  and  the  demand 
of  the  borrower  should  decide  all  loans.  The  only  .question  for 
the  bank  officer  to  decide  is,  is  tlic  demand  legal,  if  legal,  the  loan 

12 


must  be  made.  The  power  to  loan  or  withhold  money  is  now  held 
exclusively  by  owners  and  manipulators  of  private  money.  And 
•as  there  is  no  other  kind  of  money,  when  they  loan  liberally  all 
business  flourishes.  When  they  refuse  loans,  everything  goes 
wrong,  except  with  the  owners  and  manipulators  of  the  money, 
such  times  are  their  richest  harvests,  and  past  and  present  ex- 
perience demonstrates  they  are  not  slow  to  profit  by  the  power 
they  hold.  They  have  it  in  their  power  to  bring  on  a  panic  as 
often  as  they  chose  by  withholding  loans,  and  thus  depreciate 
the  value  of  property  and  possess  themselves  of  it  at  a  small  valua- 
tion. Most  if  not  all  other  monopolies  and  trusts  are  producers 
or  distributors  of  wealth,  but  the  money  monopolists  never  pro- 
duce wealth  they  are  in  a  sense  parasites,  drones  in  the  industrial 
hive,  living  on  the  sweets  collected  by  others,  their  chief  business 
seems  to  be  to  change  wealth  produced  by  others  into  their  own 
possession. 

All  other  monopolies,  all  enterprises,  in  fact  the  prosperity  of 
trie  country — its  whole  productive  industry  as  well  as  the  Gov- 
ernment quails,  and  shrinks  at  the  touch  of  this  giant  monster 
— monopoly. 

We  see  the  importance  and  power  of  money  when  (if  history 
says  truly)  men,  women  and  even  nations  sell  themselves  body 
and  soul  for  money. 

If  Napoleon  could  have  been  granted  three  wishes  for  as- 
sistance in  his  European  wars — his  first  wish  would  have  been 
for  money,  his  second  money,  his  third  wish  more  money.  The 
European  nations  to-day  are  controlled  in  both  their  honorable 
and  dishonorable  acts  by  money.  And  I  am  sorry  to  say  the 
United  States  is  laboring  under  a  similar  disgrace.  It  is  warped, 
:swayed,  pinched,  disgraced  and  controlled  by  money. 

The  money  powers  are  first  and  occupy  the  seat  of  honor;  the 
'Government  is  only  a  "right  hand  supporter"  an  excellent  ar- 
rangement truly  for  the  money  powers.  Oh,  my  countrymen, 
"how  long  shall  this  thing  be?  How  long  shall  we  worship  the 
•golden  calf  and  bow  down  to  the  golden  image?  Or  how  long 
shall  we  be  controlled  by  this  usurper  of  our  rights? 

It  is  our  right  as  a  nation  to  control  and  not  be  controlled  by 
money.  Arise  therefore  in  your  might  as  intelligent  freemen 
and  institute  measures  to  control  this  golden  god  whom  all  the 
world  worships.  You  have  the  power,  if  you  will  exercise  it,  to 
•control  the  money  of  the  nation,  and  by  that  means  control  all 


else  that  is  now  controlled  by  the  money  powers.  Your  Govern- 
ment will  then  hold  the  seat  of  honor.  It  will  be  the  head,  not 
the  tail.  Periodical  panics  have  existed  ever  since  this  money 
power  has  been  delegated  and  farmed  out  by  the  Government  and 
must  always  exist  until  the  people  shall  take  the  matter  into  their 
own  hands  and  establish  a  banking  department  such  as  the  bill 
proposes,  and  loan  money  to  the  States,  to  the  Government,  and 
to  every  one  who  offers  the  legal  security,  and  let  demand  and 
security  alone  limit  the  supply,  which  must  effectually  check  any 
money  crisis  that  may  arise.. 

President  Grant  in  his  message  to  Congress  thus  discourses 
on  money  supply  and  demand.  He  says:  "The  experience  and 
judgment  of  the  people  can  best  decide  just  how  much  currency 
is  required  for  the  transactions  of  the  business  of  the  country. 
It  is  unsafe  to  leave  the  settlement  of  this  question  longer  to  the 
Secretary  of  the  Treasury  or  to  the  Executive."  No  doubt, 
"Demand  for  use  is  the  law  of  volume,"  and  that  should  settle 
the  question.  When  there  is  money  enough  for  all  to  borrow, 
and  borrowers  enough  for  all  to  lend,  our  money  system  will  be 
as  perfect  as  trade  and  production  should  require.  When  there 
are  borrowers  with  good  security,  but  no  money  to  borrow,  or 
plenty  of  money  and  no  borrowers.  The  money  system  is  wrong 
and  the  people  suffer.  The  banking  department  above  men- 
tioned is  so  perfect  it  can  always  lend,  and  always  borrow  and 
suffer  no  loss.  With  our  money  system  thus  arranged,  private 
or  corporate  banks  of  deposit  and  discount  would  have  the  same 
power  to  loan  money  and  receive  interest  as  now;  but  when  they 
wish  to  call  in  their  loans,  but  little  trouble  could  arise,  as  the 
people's  banking  department  could  always  supply  the  deficiency 
as  long  as  the  security  held  out.  Power  to  control  the  supply  of 
money,  should  never  be  held  by  individuals  over  productive  in- 
dustry. The  Government  through  its  banking  department  should 
alone  hold  this  power.  We  have  numerous  workmen,  skilled 
artisans,  a  large  territory  and  an  abundance  of  natural  element 
wealth  with  resources  sufficient  to  provide  food  and  clothing 
for  all  our  own  citizens  and  millions  of  dollars  worth  for  export, 
and  if  this  banking  department  was  in  operation  the  Govern- 
ment could  be  run,  railroads  built,  and  all  large  enterprises  car- 
ried forward  without  one  dollar  of  European  gold,  would  it  not 
be  so?  We  only  require  a  cheap  and  sure  representative  of  our 
property  to  enable  us  to  make  our  exchanges  which  could  easily 


172 

be  supplied  by  the  banking  department  above  mentioned.  Not 
by  making  gold  and  silver  the  only  basis  of  such  currency,  it 
is  too  scarce  and  too  costly.  But  by  making  Government  and 
State  bonds,  real  estate  and  other  property  the  basis. 

Money  in  some  parts  is  now  cheap  and  the  supply  ample,  yet 
it  is  no  more  abundant  now  than  it  was  in  1873  and  1893,  when 
the  business  of  the  country  stagnated  for  want  of  money,  which 
could  not  be  obtained  for  business  purposes  with  the  best  of 
security.  At  those  times  the  timid  hoarded,  and  the  banks  re- 
fused their  discounts,  consequently  wide  spread  ruin  followed, 
and  the  extent  of  the  loss  and  suffering  entailed  by  it  will  never 
be  known;  yet  all  could  have  been  prevented  by  a  Govern- 
ment banking  department  with  power  to  lend  money  upon 
security,  as  above  stated,  and  thus  kept  up  the  supply  of  money 
for  legitimate  business. 

The  ruling  powers  of  civilized  nations  are  solely  responsible 
for  all  the  evils  arising  from  the  hoarding  and  monopolizing  of 
money,  because  by  legal  enactment  they  make  all  the  money, 
but  fail  to  provide  against  the  avaricious  desire  of  man  to  hoard 
and  monopolize  the  same,  which  is  as  clearly  their  province  and 
duty  as  it  is  to  make  the  money,  and  thus  by  wise  and  judicious 
laws  put  it  out  of  the  power  of  any  man,  or  body  of  men  to  injure 
business  by  hoarding  and  monopolizing  the  money,  which  has 
been  done  on  an  average,  every  ten  years  since  its  first  formation. 
Public  money,  created,  owned  and  loaned  by  the  people  through 
the  above  named  banking  department,  would  be  a  sovereign 
remedy,  and  a  just  one,  to  prevent  all  evils  that  now  originate 
through  hoarding  and  monopolizing  of  private  money. 

It  will  be  readily  seen  that  creating  public  money  and  adminis- 
tering it  through  a  banking  department  as  above,  would  add 
wealth,  honor  and  financial  independence  to  both  the  people  and 
Government  of  the  United  States,  and  protect  them  from  all 
money  panics  and  the  evils  it  implies.  The  Rothschilds,  the 
money  kings  of  Europe,  are  said  to  rule  with  absolute  sway  some 
of  the  principalities,  or  small  kingdoms  of  Europe,  not  by  supe- 
rior knowledge  and  wisdom,  not  by  force  of  numbers,  not  by  in- 
heritance, legal  right  or  the  consent  of  the  governed,  but  by  the 
power  of  money.  Witness  also  the  English  bank  with  what 
tyrannical  power  it  rules  the  commerce  or  business  of  Great 
Britain,  stimulating  business  by  a  low  rate  of  interest,  and  check- 
ing the  business  of  the  whole  country  by  high  rates,  and  this  in- 


173 

jury  is  inflicted  upon  the  people  of  that  country  from  generation 
to  generation.  The  injury  thus  done  by  that  bank,  is  not  con- 
fined to  the  British  Isles;  the  United  States  also  feel  its  power. 

Its  varying  rates  of  discounts  is  almost  as  much  a  subject  of 
discussion  here  as  there,  and  the  whole  business  of  our  country 
is  measurably  effected  by  it;  we  even  see  that  bank  dictating 
terms  to  our  Government  respecting  financial  matters. 

Shall  it  always  be  thus?  After  having  sundered  every  political 
connection  must  we  still  be  controlled  by  a  few  of  the  money  lords 
of  that  land  in  all  our  vital  interests?  No,  verily  no!  Let  us 
sever  all  entangling  alliances  of  currency  and  finance  by  establish- 
ing the  banking  department  herein  advocated  and  thus  settle  our 
money  question  for  all  time,  by  instituting  public  money  as  an 
auxiliary  to  private  money  and  enough  of  it,  to  prevent  all  money 
famines  and  money  panics,  and  thus  stop  all  foreign  absorption 
of  Government,  State  and  corporation  bonds,  which  in  time  will 
prevent  all  outflow  of  gold  that  now  goes  to  pay  interest  on 
bonds  held  abroad.  As  the  banking  department  could  supply 
the  Government  all  the  money  Congress  would  permit  it  to  bor- 
row, and  it  could  loan  to  every  State  and  every  citizen  all  the 
money  they  can  legally  secure.  So  from  the  time  this  Depart- 
ment is  in  working  order,  neither  the  Government,  the  States,  or 
the  people  would  have  to  depend  for  money,  on  private  money 
lenders  either  foreign  or  domestic. 

When  this  is  done,  the  varying  scale  of  discount  of  the  English 
Bank  would  do  us  no  harm,  and  our  Government  would  soon  be- 
come the  money  power.  It  being  a  Government  of  the  people, 
by  the  people,  for  the  people.  We  do  not  pretend  or  claim  this 
banking  system  perfect,  but  inasmuch  as  it  contains  the  power  of 
self  perfection,  it  should  surely  be  tried,  as  all  other  banking  in- 
stitutions are  not  only  imperfect,  but  contains  the  seed  of  trouble 
and  dissolution. 

Let  us  look  at  another  weak  point  in  our  present  system  of 
finance. 

Suppose  we  wish  to  build  a  railroad  of  some  importance — we 
form  a  company,  mature  our  plans,  obtain  franchises,  from  Gov- 
ernment, States,  counties,  etc.,  get  up  our  bonds,  and  then  per- 
haps get  the  Government  to  guarantee  to  pay  the  interest  on  our 
bonds,  there  being  no  representative  of  our  property  in  the  shape 
of  money  in  sufficient  quantities  in  America,  we  send  our  best  man 
to  Europe  to  sell  our  bonds,  and  he  does  sell  them,  perhaps  at  a 


174 

large  discount;  then  by  manipulation  a  bill  of  exchange  is  ob- 
tained and  our  man  starts  for  home  with  the  means  to  build  our 
railroad  in  his  pocket,  or  rather  with  a  permit  to  use  American 
currency  as  a  representative  of  our  property,  to  enable  us  to 
make  our  exchanges  while  building  the  road  and  when  said  per- 
mit is  presented  at  the  proper  place,  the  greenbacks  or  other 
paper  currency  flow  out  and  our  road  is  built.  Gold  is  yearly 
sent  to  Europe  to  pay  the  interest  on  our  bonds,  and  in  time  the 
principal  is  also  paid  in  gold,  dollar  for  dollar  according  to  the 
face  of  the  bond. 

It  will  be  here  observed  that  nothing  has  been  brought  into 
America  from  Europe  to  build  our  road  save  the  piece  of  paper 
in  our  man's  pocket.  Our  engineers  and  laborers,  the  territory 
upon  which  to  build  the  road,  our  coal  and  ore  with  which  to 
manufacture  our  rails,  locomotives,  etc.,  were  here,  as  well  as 
lumber  for  ties,  bridges,  etc.  It  appears  then  that  after  we  com- 
pleted our  plans  and  got  our  bonds  ready,  the  only  thing  yet 
wanted  was  a  representative  of  our  property  in  the  shape  of 
money  to  enable  us  to  make  our  exchanges  while  building  the 
road.  After  this  representative  of  our  property  is  obtained  in 
Europe,  we  have  still  to  use  American  currency  to  make  our 
exchanges  and  American  workmen  and  material  to  build  our 
road. 

Is  it  prudent  for  us  to  obligate  ourselves  to  pay  a  gold  or  any 
other  interest  to  Europe  for  the  privilege  of  using  American  cur- 
rency to  represent  our  property?  Is  it  statesmanlike  to  force 
such  a  condition  of  things  upon  the  enterprise  of  America? 
Would  it  not  .be  equally  wise  to  hire  a  European  to  represent  us 
in  Congress  as  to  hire  European  currency  to  represent  our  prop- 
erty ?  All  such  blundering  defects  in  our  national  currency  would 
be  radically,  justly  and  permanently  cured  by  the  operation  of 
this  banking  department  of  our  Government.  Our  property  could 
obtain  a  representative  at  said  department  sufficient  for  all  large 
enterprises  as  well  as  for  all  business. 

Surely  if  our  bonds  would  secure  European  gold  they  would 
be  good  security  for  Government  bank  money.  When  this  money 
was  no  longer  wanted  for  business  purposes  it  would  return  to 
these  Government  banks  as  naturally  as  water  would  flow  down 
hill,  and  the  banks  could  retain  it  without  loss  until  it  was  again 
wanted,  thus  differing  from  all  other  banks  in  this,  one  of  its 
fundamental  principles. 


If  this  banking  department  was  established,  and  dark  and 
cloudy  days  come  upon  our  country,  instead  of  hawking  its  bonds 
all  over  Europe  and  no  sales  even  at  fifty  per  cent,  discount,  as 
was  the  case  during  the  rebellion,  the  treasurer  could  deposit  the 
bonds  with  the  banking  department  and  obtain  the  money  as  a 
loan  and  pay  for  its  use,  only  3$  per  annum  interest.  And  evert 
that  interest  would  return  to  the  Government  from  year  to  year 
at  its  quarterly  settlement  with  the  banking  department,  which 
is  provided  for  in  the  bill. 

No  advocate  of  our  present  bank  currency  could  say  the  bonds 
would  not  be  good  security  as  this  mode  of  loaning  and  securing: 
currency  is  now  pursued  with  the  so-called  National  Banks.  But 
the  Government  receives  but  little  advantage  from  it  now. 

The  proposed  bank  currency  being  made  money,  a  full  tender,, 
and  receivable  for  duties  on  imports  and  debts  due  the  Govern- 
ment, and  being  truly  national  would  be  that  much  better  than 
our  present  bank  currency.  Besides  the  Government  would  re- 
ceive 3$  per  annum  interest  for  all  of  its  outstanding  currency, 
and  the  interest  received  by  the  Government  would  go  into  cir- 
culation without  interest  and  without  security,  which  will  relieve 
the  people  of  that  much  burden.  As  all  interest  received  as  bank- 
ing department  earnings,  would  go  into  circulation  the  same  as 
any  other  Government  revenue. 

We  have  in  America  matter,  mind  and  muscle,  and  an  inventive 
ingenuity  surpassing  all  other  nations  in  many  things,  an  ample 
currency,  cheap,  and  always  obtainable  upon  security,  would 
combine  all  these,  and  when  combined  they  form  the  power  to 
produce  wealth,  whether  that  be  gold,  silver,  wheat,  cotton,  com 
or  any  other  commodity  that  enriches  a  nation.  We  are  at  present 
a  nation  of  borrowers,  coaxing,  tempting  and  trying  in  every 
way  to  get  hold  of  European  gold,  to  build  our  railroads,  run 
our  Government,  our  factories,  mines,  etc. 


CHAPTER  XXXVII. 


GOLD,  GREENBACKS  AND  PUBLIC  MONEY. 

One  of  the  duties  of  Congress,  is,  "To  coin  money,  regulate 
the  value  thereof  and  of  foreign  coins  and  fix  the  standard  of 
weights  and  measures."  Weights,  measures  and  money  are  all 
civilized  tools  to  facilitate  the  transaction  of  business,  and  our 
present  traditions,  customs,  laws  and  systems,  require  all  busi- 
ness done  with  these  tools.  Tariffs,  taxes  and  labor  are  paid  in 
money,  all  values  are  estimated  and  measured  by  money. 

Money  is  the  most  important  of  the  tools  above  mentioned,  as 
without  it  to  assist  in  production,  there  would  be  no  values  to 
weigh  or  measure.  It  was  considered  so  important  by  the 
makers  of  the  Constitution,  they  placed  the  duty  upon  Congress 
of  making  and  supplying  it,  not  by  borrowing  it  from  other  na- 
tions, but  by  coining  it,  and  regulating  the  value  thereof. 

A  Government  upon  whom  rests  the  responsibility  of  supply- 
ing this  important  tool,  and  requiring  all  business  done  with  it, 
should  supply  it  without  stint  to  all  who  could  secure  it,  the 
amount  being  governed  by  the  demand.  It  cannot  be  said  that 
Congress  has  done  its  money  duty  to  the  people,  when  it  has 
coined  some  private  money  and  loaned  a  limited  amount  to  the 
owners  of  the  so-called  National  Banks.  Why  bankers,  who  are 
non-producers  should  be  allowed  this  great  privilege,  and  the 
producers  who  have  created  all  of  the  progressive  greatness  of 
the  nation  be  denied,  is  a  mystery  and  an  injustice. 

A  Government  requiring  all  business,  public  and  private  to  be 
valued  and  measured  by  money  and  leaving  it  altogether  to 
private  parties  to  supply  or  withhold  and  at  any  rate  of  interest 
their  selfishness  dictates,  seems  too  much  of  an  injustice  for  an 
intelligent  people  to  submit  to,  when  it  is  in  their  power  to 
remedy. 

The  Government  banking  system  herein  advocated  removes 
all  financial  injustice,  and  should  remove  all  complaint,  as  all 


177 

would  enjoy  under  that  law  equal  financial  privileges,  under  it 
our  National  Bank  owners  would  not  be  the  only  Government 
beneficiaries  as  now.  As  all  bankers,  merchants,  manufacturers, 
farmers  and  all  others  who  possessed  gold  or  silver  bullion,  Gov- 
ernment or  State  bonds,  or  real  estate  either  in  the  cities  or  in 
the  country  could  borrow  money  at  the  above  banking  depart- 
ment for  3^  per  annum  interest. 

No  one  disputes  the  right  and  duty  of  Congress  to  supply  the 
people  of  the  United  States  with  money  sufficient  for  all  pro- 
ductive and  legitimate  business.  The  question  is,  of  what  ma- 
terial shall  the  money  be  made?  or  rather,  upon  what  kind  of 
material  shall  the  money  be  stamped?  Bullionists  claim  we  must 
use  gold  exclusively,  as  it  is  the  only  "honest  money." 

We  ask,  is  this  possible?  Have  we  gold  sufficient  to  form  a 
currency  for  this  country,  whose  average  yearly  requirements 
are  many  times  greater,  than  the  gold  coin  available  for  that 
purpose?  While  the  country  is  constantly  developing  and  re- 
quiring more  money,  gold  is  not  increasing. 

The  small  supply  of  gold  renders  it  practically  impossible  that 
it,  alone  should  ever  supply  our  money  requirements,  to  say 
nothing  of  the  fact  the  gold  belongs  to  private  owners,  who 
have  it  in  their  power  to  let  it  be  used  by  the  public,  or  withdraw 
and  hoard  it,  as  most  money  has  been  the  past  eight  years,  and 
in  consequence.  Both  the  Government  and  the  people  have 
financially  suffered.  All  limited  currency  is  open  to  like  objec- 
tions, as  by  withdrawing  and  hoarding  it,  may  confuse  the  busi- 
ness of  the  whole  country,  and  bring  on  a  panic  like  that  of 
1873  and  1893. 

Silver  coin  is  open  to  all  the  objections  urged  against  gold, 
with  the  additional  one,  "silver  is  too  bulky  to  be  an  acceptable 
currency  for  this  country  except  in  small  sums." 

If  California  with  millions  of  gold  pouring  into  its  coffers 
every  month,  complain  of  the  scarcity  of  coin,  what  would  the 
complaint  be  from  the  whole  country  if  its  business  was  con- 
fined to  gold  coin  ?  The  impossibility  of  making  gold  the  only 
money  for  this  great  American  nation,  or  to  make  it  the  exclu- 
sive redeemer  for  all  currency  required,  must  be  apparent  to  all 
without  further  argument,  so  we  now  turn  to  the  greenback. 
The  greenback  was  invented  and  issued  under  circumstances  of 
great  Government  necessity.  Gold  and  silver  coin  and  notes  of 


private  banks  had  left  the  channels  of  trade  save  on  the  Pacific 
Coast,  specie  payments  had  been  suspended  and  no  money  left 
in  circulation,  a  money  panic  was  eminent,  the  Government's  de- 
mands were  great  and  urgent,  a  civil  war  was  to  be  provided  for, 
no  money  could  be  borrowed  by  the  Government  at  home  or 
abroad.  There  was  no  gold  or  silver  to  coin  belonging  to  the 
Government,  so  Congress  availed  itself  of  its  constitutional  right, 
and  coined  paper  into  money,  founding  it  upon  the  credit  of  the 
country,  and  thus  produced  the  greenback,  which  filled  the 
highest  expectations  of  its  friends,  by  standing  in  the  brunt  of 
battle  and  of  business  for  18  years  and  it  became  acceptable  to 
the  American  people  as  money.  With  not  a  dollar  of  gold  or  sil- 
ver in  sight  the  nation  prospered  as  never  before. 

President  Grant  says:  "The  experience  of  the  present  (1873) 
panic  has  proven,  that  the  currency  (greenbacks)  of  the  country 
based  as  it  is  upon  the  credit  of  the  country,  is  the  best  that  has 
ever  been  devised — the  holders  of  currency  hoarded  it  as  they  did 
gold  and  silver  in  a  former  condition  of  a  like  nature." 

It  is  regretted  the  greenback  was  not  made  a  more  perfect 
currency,  and  regretted  that  Congress  crippled  and  curtailed  the 
power  of  this  faithful  servant  at  the  instigation  of  its  enemies, 
by  limiting  its  paying  powers,  and  destroying  such  a  large  por- 
tion of  them,  which  crippled  business  and  brought  on  the  1873 
panic. 

I  will  stipulate  what  Congress  should  have  done.  When  the 
incipient  steps  toward  making  a  national  currency  proved  so 
satisfactory  and  profitable  to  both  Government  and  people,  as  the 
greenback  proved  to  be,  and  that  it  was  the  "best  currency  ever 
devised,"  Congress  instead  of  destroying  it,  should  have  stood 
against  its  enemies  with  a  moral  backbone  as  unyielding  as  the 
laws  of  nature  in  defense  of  this  most  faithful  of  public  servants 
and  improved  and  perfected  it.  The  appellations  applied  to  the 
greenback  by  its  enemies,  such  as  "rag-money,"  "shin-plasters," 
"dishonest  money,"  and  other  disgraceful  expletives,  (disgrace- 
ful only  to  the  parties  using  such  language)  are  without  argument 
and  void  of  reason.  As  the  work  done  with  a  paper  medium  of 
exchange  is  as  honest  as  that  done  by  a  gold  medium.  Boston, 
New  York,  Philadelphia  and  other  eastern  cities  were  built  with 
a  paper  medium,  yet  they  are  as  permanent  and  honestly  built 
as  San  Francisco  that  used  a  gold  medium.  The  warehouses  of 


179 

the  former  are  filled  with  as  costly  and  honest  goods,  their  citi- 
zens are  as  well  raised  and  comfortably  clothed  as  those  of  San 
Francisco.  Our  late  war  was  as  honestly  and  effectually  fought 
with  the  greenback  medium  as  though  gold  had  been  used. 
Where,  then,  has  gold  any  advantage  over  a  full  legal  tender 
paper  money,  in  creating  wealth,  build  cities,  exchange  values, 
or  improve  a  country?  There  is  no  difference  only  in  con- 
venience what  material  is  used  to  bear  about  the  money  stamp. 
When  convenience  is  consulted  paper  money  holds  the  first  rank. 
The  pieces  of  leather  of  the  ancient  barthagenians,  the  mulberry 
bark  of  the  Asiatics,  the  greenbacks  of  America,  the  silver  of 
Nevada,  nor  the  gold  of  California  have  the  qualifications  of 
money  without  the  sovereign  stamp.  As  the  material  upon 
which  the  stamp  is  affixed  is  only  the  legal  agent  of  the  sovereign 
to  express  the  power  of  money. 

To  not  perfect  so  valuable  an  invention  as  our  present  green- 
back, is  unworthy  the  spirit  of  progress,  no  machine,  no  valuable 
invention  whatever  its  qualifications,  was  ever  perfect  when  first 
given  to  the  public,  their  inventors  did  not  abandon  them,  but 
continued  adding  to  their  merits  until  comparative  perfection 
was  attained,  so  it  should  have  been  with  our  greenback  cur- 
rency. The  first  effort  was  good,  but  the  product  was  imper- 
fect, yet  no  improvement  has  ever  been  attempted,  its  destruc- 
tion apparently  was  only  aimed  at.  The  bill  herewith  submitted 
is  aimed  at  the  improvement  of  the  greenback,  or  rather  the 
production  of  a  national  money,  a  public  money,  produced,  owned 
and  loaned  by  the  people,  to  the  Government,  to  the  States,  to  cor- 
porations, in  fact  to  every  citizen  who  demands  a  loan  and  pro- 
duces the  required  security,  such  as  Government  and  State 
bonds,  and  bullion  at  90$  of  their  gold  market  value  or  real 
estate  at  one-half  of  its  taxable  value,  and  at  an  interest  not  to 
exceed  3^  per  annum. 

This  money  would  be  an  improvement  on  the  greenback  in 
that  it  would  be  a  full  tender,  and  made  of  gold  and  silver  as 
well  as  paper,  and  the  borrower  or  his  property — not  the  Gov- 
ernment redeems  it.  This  money  would  yield  the  Government  a 
3$  per  annum  revenue,  the  greenback  being  private  money, 
yields  the  Government  nothing,  but  vexation  and  labor  to  retain 
gold  for  its  redemption. 

The  greenback  is   as   much   a  Shylock   money  as   gold   and 


i8o 

silver  coin,  but  Shylock  would  hold  no  power  over  this  public 
money  to  make  it  yield  more  than  3$.  This  bill  would  make 
money  always  available  to  those  who  hold  the  security  at  about 
an  equitable  interest,  thus  reducing  interest  to  one-half  present 
rates,  and  the  many  blessings  it  will  impart  to  both  Government 
and  people  cannot  all  be  seen  now,  but  much  may  be  gleaned 
from  these  pages.  The  details  of  the  bill  may  be  improved,  but 
the  fundamental  principles,  the  quantity  and  quality  of  the 
money  loaned,  its  flexibility,  who  makes  and  distributes  it  and 
reaps  the  profits  of  the  business,  can't  be  much  improved. 


CHAPTER  XXXVIII. 


MONEY— ITS  PROPER  DISTRIBUTION. 

The  machinery  for  the  proper  distribution  of  money  should 
be  a  part  of  the  financial  machinery  necessary  for  making  and 
supplying  the  people  with  money.  An  adequate  amount  of 
money  is  one  thing  and  distributing  it  among  the  people  another. 
Money  like  water  and  manure  become  useful  and  valuable  by 
being  distributed.  But  few  doubt  there  being  an  ample  supply 
of  money  in  the  country  at  the  present  time,  but  it  is  hid  up  in 
napkins  or  locked  in  bank  vaults,  whose  officers  say  they  "dare 
not  lend  it  until  they  know  the  end  of  our  present  troubles.'' 
Meanwhile  the  business  of  the  whole  country  suffers  for  want 
of  the  money  now  idle  in  bank  vaults.  We  attribute  no  wrong 
to  the  holder  or  owners  of  money  to  refuse  to  invest  or  lend  it 
when  they  think  their  interests  is  best  served  by  so  doing.  The 
fault  is  with  Congress  in  not  creating  a  currency  supply  and  a 
system  of  distribution  for  supplying  the  people,  when  private 
parties  and  bankers  refuse  loans,  and  thus  keep  business  alive 
and  save  the  country  from  wreck  and  ruin.  For  want  of  public 
money  and  a  national  system  of  distribution,  producers  in  some 
sections  of  our  country  pay  15$  per  annum  for  the  use  of  money, 
while  other  sections  pay  less  than  one-third  of  that  sum  and 
National  Bank  owners  get  from  the  Government  all  the  currency 
they  can  secure  for  one  per  cent,  per  annum,  thus  inflicting  a 
manifest  injustice  upon  a  large  part  of  our  people  by  making 
some  pay  five  times  as  much  for  the  use  of  money  as  it  is  worth 
invested  in  the  industries,  while  others  get  all  they  want  for 
one  per  cent,  per  annum,  thus  discriminating  between  citizens. 

The  importance  of  a  full  supply  of  money  and  its  just  and  sure 
distribution,  has  never  been  fully  considered  by  our  lawmakers, 
they  acted  less  wisely  than  organizations  of  less  power.  Witness 
our  municipal  officers  to  whom  is  assigned  the  duty  of  supplying 
the  citizens  with  water — they  do  not  think  their  duty  performed 


182 

when  they  have  built  the  reservoirs  and  filled  them  with  an  am- 
ple supply  of  water  for  every  citizen.  But  when  they  have  laid 
down  the  mains  from  the  reservoirs  and  distributing  pipes  to 
every  house,  garden  and  park  and  filled  them  with  an  ample 
supply,  then,  only  their  duty  is  performed.  The  inhabitants  of  a 
city  would  be  as  well  or  better  supplied  with  water  in  the  reser- 
voirs only,  without  the  distributing  pipes,  as  the  people  of  the 
United  States  have  been  supplied  with  money  the  past  eight 
years. 

There  may  have  been  an  ample  supply  in  the  private  money 
reservoirs,  but  the  people  as  a  rule  were  not  allowed  to  partake 
even  from  them  only  in  exceptional  cases  and  then  at  heavy 
cost,  in  consequence  business  was  hampered  and  broken  up, 
and  loss,  suffering  and  even  death  resulted,  and  all  for  want  of  a 
law  authorizing  a  permanent  supply  of  public  money  and  a  just 
distribution. 

Again  the  Architect  of  the  Universe  when  He  organized  this 
earth  and  placed  more  than  a  supply  of  water  upon  it  to  sustain 
all  animals  and  vegetables  that  could  be  produced  upon  it,  He 
^knew  that  without  subjecting  the  water  to  His  law  of  distribution, 
the  earth  would  be  a  barren  waste  and  His  work  was  not  pro- 
nounced good  until  He  spake  and  "a  mist  went  up  from  the 
earth  and  watered  the  whole  face  of  the  ground,"  and  because 
of  that  law  of  distribution  the  earth  continues  fruitful. 

For  want  of  a  law  creating  public  money  and  its  just  distribu- 
tion, the  people  of  the  United  States  have  suffered  physically, 
mentally  and  financially  beyond  computing,  during  their  present 
financial  trouble,  to  say  nothing  of  the  losses  and  misery  they 
have  suffered  during  all  the  money  panics  that  have  afflicted 
our  country  since  its  first  formation.  Public  money  and  its 
proper  distribution  is  the  only  remedy.  As  there  is  no  principle 
potent  enough  to  circulate  private  money  continuously  over  the 
country,  if  its  owners  refuse.  Their  refusal  in  1837,  1846,  1854, 
1873,  T^93  and  at  other  times  brought  on  the  money  famines  of 
those  times  which  tried  and  proved  the  weakness  of  private  money 
systems.  The  amount  of  private  money  does  not  seem  to  effect 
the  interest  demanded  for  its  use,  or  its  more  liberal  circulation. 
As  in  1865  when  our  circulating  medium  was  said  to  be  $2,111,- 
678,684,  some  borrowers  with  good  security  paid  15$  interest 
per  annum  to  my  certain  knowledge,  and  when  it  was  reduced 


to  $1,596,317,187,  interest  in  the  same  farming  district  was  only 
15$  per  annum  and  money  no  more  difficult  to  borrow,  but  the 
result  of  the  15$  was  the  same  in  both  cases.  That  is,  the  money 
loaners  become  the  owners  of  the  farms  and  their  former  owners 
become  tenants  or  sought  other  homes. 

Such  results  could  not  happen  under  a  proper  regulated  system 
of  public  money,  as  then,  no  citizen  would  be  required  to  pay 
more  than  3^  per  annum  for  borrowed  money,  and  if  borrowed 
of  the  Government  banks  only  3$  or  less  and  as  long  as  the 
interest  is  paid  the  principal  may  remain,  whether  times  be 
hard  or  flourishing  or  money  scarce  or  abundant. 

The  theory  of  a  Government  banking  department,  such  as 
the  bill  herein  provides,  is  so  perfect  in  its  distributing  principle, 
that  if  put  in  practice,  the  extremes  of  the  country  would  be  all 
supplied  with  currency  with  as  much  certainty  and  at  the  same 
rate  of  interest  as  the  great  business  centers.  A  poor  man  could 
borrow  a  small  sum  at  the  same  rate  of  interest  that  a  rich  man 
could  borrow  a  large  sum.  Now  a  private  money  owner  may 
loan  money  to  a  rich  man  for  5^,  but  he  will  demand  twice  or 
thrice  that  sum  of  a  poor  man.  Now,  although  our  Govern- 
ment is  the  largest  banker  known,  supplies  more  capital,  lends 
larger  sums  of  money  than  any  other,  yet  no  producer  of  wealth 
whatever  his  need  or  security,  can  borrow  money  from  the 
Government.  Bankers,  are  the  only  favored  beneficiaries.  They 
can  borrow  of  the  Government  for  \%  per  annum. 

A  currency  instituted  and  distributed  as  the  above  bill  pro- 
vides would  spread  over  and  bless  a  country  measurably  like 
the  beautiful  regulation  of  Nature  in  its  distribution  of  moisture. 
The  atmosphere  takes  it  up  from  the  great  reservoirs — the  lakes 
and  oceans,  and  float  it  inland  distributing  it  upon  mountain  and 
plain,  for  the  benefit  of  man  and  beast,  creating  life  and  beauty, 
feeding  the  fountains  and  swelling  the  rivers  and  lakes  on  its 
way  back  to  the  reservoirs,  when  it  is  again  taken  up  and  distri- 
buted, and  so  on  while  the  earth  endures.  Even  so  this  public 
money  would  spread  over  the  country  by  the  distributing  agents 
to  bless  all  avenues  of  trade  and  industry,  and  then  flow  back 
through  the  arteries  of  commerce  to  the  great 'business  centers, 
from  there  the  agents  of  the  law  distributes  it  again  over  the 
country,  there  to  assist  in  creating  and  exchanging  wealth  and 
comforts,  which  flow  down,  filling  the  channels  of  commerce 
and  transportation,  building  up  the  cities  as  well  as  the  country, 


184 

filling  our  ships  and  spreading  unnumbered  comforts  over  the 
world  for  the  happiness  of  man. 

Interest  for  this  public  money  under  the  above  bill  would  be 
3  per  cent,  per  annum  in  New  York,  3  per  cent,  in  Florida,  3 
per  cent,  in  Texas,  3  per  cent,  on  the  Pacific  Coast,  3  per  cent,  in 
Alaska.  In  fact,  only  3  per  cent,  in  any  and  all  parts  of  our 
Union.  There  could  be  no  discrimination  between  citizens,  none 
between  city  and  country,  none  between  one  locality  and  another. 
No  discrimination  between  rich  and  poor,  no  exceptions  on  ac- 
count of  distance,  all  stands  upon  a  financial  equality  before  the 
law.  If  the  security  is  all  right  the  money  demanded  must  be 
supplied. 

Private  money  never  has  nor  never  can  be  so  circulated.  The 
big  banks  never  loan  money  to  small  producers,  nor  to  large 
ones  at  a  distance  for  the  reason  partly,  the  money  they  have, 
belong  to  depositors  and  if  loaned  too  far  away,  the  money  may 
not  be  forthcoming  when  wanted.  Again  interest  for  private 
money  is  not  uniform,  it  rates  from  I  per  cent,  per  annum  to 
3  per  cent,  per  month.  Thus  making  measures  of  unequal 
value,  analogous  to  a  rubber  yard  stick  for  a  cloth  measure. 
It  may  readily  seen  how  just,  perfect  and  positive  money  distri- 
bution would  be  under  the  enactment  of  the  above  bill.  As 
then  the  banking  department  would  loan  money  for  3$  per  an- 
num to  every  citizen  who  demanded  it  and  furnished  the  required 
security.  Such  as  Government  and  State  bonds  and  bullion  at 
90$  of  their  gold  market  value  and  real  estate  at  half  its  taxable 
value. 

It  is  too  late  to  urge  constitutional  or  other  objections  against 
the  organization  of  a  Government  banking  department,  after  the 
Government  having  loaned  its  cash  and  credit  to  large  corpora- 
tions— railroads,  etc. — and  loaned  hundreds  of  millions  of  money 
to  the  so-called  National  Banks,  issued  and  redeemed  large 
amounts  of  its  own  notes  (greenbacks  and  treasury  notes).  Be- 
sides receiving  money  on  deposit  and  issuing  certificates  for  the 
same,  and  doing  other  banking  business  through  its  treasury, 
all  of  which  should  be  done  by  a  banking  department  always  open 
for  business  during  business  hours,  and  at  whose  counter  no  citi- 
zen that  applied  for  a  loan  should  be  refused  if  he  offered  the 
legal  security.  Such  would  insure  a  more  just  distribution  of 
money  than  can  be  found  now  anywhere  on  the  earth,  and  the 
profits  would  belong  to  the  whole  people. 


CHAPTER  XXXIX. 


A  SYSTEM   OF   PUBLIC   MONEY. 

i 

Administered  through  a  banking  department. 

The  "standard"  of  value  of  this  money  to  be  United  States 
gold  coin. 

Congress  to  fix  the  value  of  all  money,  whether  it  be  coin  or 
paper,  to  that  of  the  standard  according  to  their  face  value.  All 
to  be  a  full  tender,  for  all  tariffs,  taxes,  debts  and  dues,  both 
public  and  private.  This  money  to  be  distributed  through  the 
banking  department,  by  loaning  direct  to  the  people,  to  the 
States  and  to  the  Government  upon  the  securities  the  law  may 
demand  and  at  an  equitable  and  uniform  rate  of  interest  for  both 
large  and  small  sums. 

All  "public  money"  whether  stamped  upon  gold,  silver  or  paper 
to  be  redeemed  by  the  borrower,  the  same  as  the  National  Bank 
note  is  now  redeemed. 

In  presenting  this  system  of  public  money  I  have  in  former 
chapters  stated  some  of  the  demands  for  it,  provided  a  bill  for 
its  production  and  arguments  in  its  support  in  volume,  number 
and  soundness  not  possible  to  be  produced  in  support  of  any 
and  all  private  money  systems  known. 

The  difference  between  private  and  public  money  is  so  marked, 
and  the  advantages  of  public  money  to  the  industries  and  to  the 
Government  is  so  great  it  is  surprising  the  nations  have  submitted 
to  the  manipulators  of  private  money  to  force  upon  them  money 
famine,  money  panics,  business  depression  and  the  loss  and 
misery  they  entail,  when  public  money  would  have  prevented  all. 
Whoever  reads  this  volume  upon  the  blessings  and  advantages 
of  public  money  over  private  will  surely  see  all  that  is  claimed 
for  it. 

Something  is  radically  wrong  in  a  country  like  this,  where  the 
Great  Father  has  caused  the  earth  to  yield  the  comforts  of  life 
like  the  "seven  plenteous  years,"  yet  nakedness  and  starvation 

12 


i86 

-stalks  through  the  land  a  scepter  of  evil  omen,  spreading  misery 
and  death  in  its  wake.  Abundance  produced  for  all  our  people 
and  millions  for  export.  Yet  thousands  tramp  our  streets  and 
highways  seeking  employment,  food  and  shelter — starving  in  the 
midst  of  plenty,  because  the  medium  has  been  hoarded  by  which 
alone  labor  is  employed  and  the  necessaries  of  life  distributed. 

It  seems  unwise,  even  cruel  on  the  part  of  Congress  to  suffer 
production  and  distribution  to  be  hampered  for  want  of  money. 
As  all  the  wealth  of  the  world  and  most  of  its  comforts  is  pro- 
duced by  labor.  How  important  then  that  labor  should  be 
nourished  and  cherished  by  the  lawmakers  of  the  country.  To 
do  this  a  law  only  is  required  to  produce  public  money  which 
would  prevent  money  panics,  and  produce  an  ample  supply  to 
keep  the  industries  fully  employed. 

There  can  be  no  labor  employed  without  money,  no  produc- 
tions without  labor.  No  debts  paid  or  products  distributed  with- 
out money.  How  important  then  is  a  never  failing  supply  of 
money?  And  how  certain  the  supply  would  always  be  if  public 
money  was  inaugurated  by  the  enactment  of  the  within  bill. 
Besides  our  home  money  supply  could  not  then  be  interfered 
with,  even  should  all  foreign  and  home  banking  institutions 
conspire  against  it  and  private  money  be  hoarded.  As  public 
money  would  be  ample  for  all  business  and  always  within  reach. 

Our  present  money  system  is  a  menace  to  our  business  well 
being,  as  it  is  likely  to  be  broken  up  or  seriously  injured  by  one 
or  both  of  the  following  causes. 

The  first  is,  our  money  being  altogether  private,  its  owners 
may  and  do  upon  slight  financial  alarm  withdraw  their  money 
from  circulation  and  thus  force  business  depression  and  panic 
upon  the  people,  as  has  been  the  case  the  past  eight  years. 

Second,  the  money  lords  of  Europe  from  necessity  or  design 
on  account  of  our  money  system  being  so  closely  linked  with 
theirs,  and  our  debts  to  them  being  large,  and  our  yearly  interest 
to  be  paid  them  so  heavy  and  all  gold.  They  know  this,  and 
if  by  crippling  us  financially,  they  can  buy  such  products  as  they 
require  from  us  for  less  money.  So  if  they  cannot  legitimately 
draw  enough  money  from  us  to  cripple  us,  they  have  only  to  buy 
up  enough  of  our  paper  currency  and  present  it  to  the  banks, 
or  to  the  United  States  Treasury  for  redemption,  to  make  our 
confusion  complete  and  thus  force  hard  times  and  cheap  prices 


:87 

upon  us.  They  know  as  well  as  we  the  impossibility  of  our  being 
able  to  redeem  our  paper  currency  in  gold  and  keep  our  indus- 
tries running,  with  such  a  meagre  supply  of  gold  for  our  currency 
basis  and  currency  redemption,  if  this  has  never  happened,  it  is 
humiliating  to  know  the  way  is  and  always  was  open  for  it  to 
happen.  We  think  a  nation  is  not  very  independent  financially, 
that  is  liable  at  all  times  to  be  crippled  in  its  production  and 
business  by  a  few  money  manipulators  at  home  or  abroad. 

Under  the  above  public  money  system  nothing  of  the  above 
could  possibly  happen,  as  no  coin  redemption  is  required;  the 
borrower  or  his  property  redeems  all  whether  it  be  coin  or 
paper.  The  withdrawal  of  private  money  could  not  then  cripple 
business,  as  public  money  would  be  in  ample  supply  to  take  the 
place  of  all  private  money  withdrawn. 

The  basis  of  this  money  being  gold,  silver,  real  estate,  Govern- 
ment and  State  bonds  no  complaint  could  be  urged  of  its  insuffi- 
cient basis.  The  twelve  billion  dollars  of  wealth  said  to  have  been 
wiped  out  of  existence  by  the  money  famine  the  people  have 
been  passing  through  the  past  eight  years,  by  depreciation  of 
values,  idle  labor,  idle  capital  and  other  causes  would  have  been 
saved  had  public  money  been  inaugurated  in  1888.  And  should 
the  within  bill  ever  yet  be  enacted,  prosperity  would  be  promptly 
and  permanently  restored  and  the  country  enabled  to  recover 
its  billions  of  lost  wealth  in  much  less  time  than  it  was  losing 
it. 

Our  Government,  States  and  people  are  said  to  be  debtors  to 
the  extent  of  eighteen  billion  dollars  and  the  yearly  interest  ap- 
proximates one  billion.  It  may  be  readily  seen  that  all  the  gold 
and  silver  in  the  country,  or  in  fact  in  the  world,  is  not  sufficient  to 
pay  this  debt,  and  if  it  is  ever  paid  it  must  be  paid  with  products, 
and  as  products  are  only  produced  by  labor,  and  under  our 
civilization  labor  is  paid  for  in  money.  So  it  would  seem  the  duty 
of  statesmen  and  all  who  work  for  the  good  of  man  to  exert 
themselves  to  inaugurate  a  system  of  money  that  never  fails  its 
duty.  A  fountain  of  currency  that  never  dries  and  always  in 
reach  of  producers,  that  no  check  be  placed  upon  production. 
To  do  this  a  public  money  system  must  be  installed.  Nothing 
else  yet  known  will  answer  the  purpose. 


CHAPTER   XL. 

LAW  CAN  CREATE  VALUE,  AND  LAW  CAN  DESTROY 

VALUE. 

Some  able  Republican  speakers  during  our  last  presidential 
campaign  made  statements  that  law  was  incapable  of  giving 
value  to  anything  even  money.  Col.  Ingersoll  said:  "Any  man 
capable  of  believing  that  money  can  be  created  by  law  is  in- 
capable of  reasoning  on  any  subject  whatever."  Such  wild  state- 
ments as  the  above  cannot  be  laid  by  opposite  statements,  as 
then  the  most  popular  speaker  would  carry  off  the  prize  right 
or  wrong.  Such  statements  must  be  combatted  by  reason  and 
facts,  and  it  won't  much  matter  who  presents  or  uses  them. 

We  believe  it  will  be  difficult  for  any  speaker  to  produce  a 
piece  of  money  that  had  not  been  made  money  by  some  sovereign 
law.  Of  course  we  with  others  believe  money  to  be  a  creature 
of  law,  and  cannot  be  made  in  any  other  way,  to  be  money  it 
must  be  a  legal  tender.  When  the  Constitution  commands 
Congress  to  "Coin  Money,  regulate  the  value  thereof  and  of 
foreign  Coins."  It  means  Congress  must  do  these  things  by 
enactment  of  law,  and  that  is  just  how  Congress  did  perform 
that  important  duty.  Every  law  of  Congress  is  important  and 
some  of  them  very  valuable  to  the  American  people,  none  more 
so  than  the  law  that  creates  our  money.  The  Constitution 
makes  it  the  duty  of  Congress  to  "coin  money,  regulate  the 
value  thereof,"  it  does  not  leave  the  fixing  the  value  of  our  money 
to  the  dead  material  upon  which  the  money  is  stamped  but 
upon  Congress,  who  is  believed  to  be  endowed  with  intelligence 
and  reason. 

Civilized  law  holds  mortgages  of  value  and  courts  will  enforce 
their  collection  in  lawful  money,  when  without  law  they  would 
be  valueless  as  the  paper  upon  which  they  are  written. 

The  ownership  of  all  real  estate  in  civilized  countries  are  held 
by  paper  titles  made  in  pursuance  of  law. 


i89 

Revenue  and  postage  stamps  are  worth  their  face  value  in 
gold  coin,  made  so  by  law,  although  made  of  paper,  and  not 
redeemable  in  gold  coin  either. 

Government  bonds  are  worth  their  face  value  in  gold.  Bonds 
are  made  in  pursuance  of  law.  They  are  only  paper  but  they 
are  valuable,  good  as  gold,  made  so  by  law. 

The  first  sixty  millions  of  Greenbacks  being  authorized  by  law 
and  made  a  full  legal  tender  for  all  debts  and  dues  the  same  as 
gold  coin.  They  never  depreciated  a  farthing,  when  gold  ad- 
vanced to  285  as  compared  to  the  after  issue  of  the  mutilated 
Greenbacks  this  full  tender  issue  advanced  to  285  the  same  as 
gold,  for  all  domestic  money  purposes. 

After  the  above  exhibit  of  the  power  of  law,  can  it  truthfully 
be  said:  "Law  can't  make  money."  "Law  can't  produce  value." 

We  have  here  sixty  million  dollars  of  money  made  by  Con- 
gressional law  just  as  good  as  gold  for  a  home  currency,  where 
neither  value  or  money  existed  before.  Behold  the  power  of 
civilized  law  to  produce  mines. 

The  law  depreciated  the  after  issues  of  Greenbacks  by  entering 
exceptions  against  them,  which  deprived  them  of  much  usefulness 
and  value  which  they  otherwise  would  have  possessed.  Again, 
behold  the  power  of  law  to  debase  money  and  destroy  values,  as 
well  as  to  make  money  and  create  value! 

Even  State  laws,  City  corporations  and  Counties  produce 
values  by  proceeding  according  to  the  law  they  are  organized 
under.  They  issue  bonds,  licenses  for  merchandizing,  liquor 
selling,  lotteries,  etc.;  that  people  willingly  pay  gold  coin  for 
which  they  would  not  do,  if  they  were  not  valuable  although 
they  are  only  paper,  the  law  gives  them  value.  Law,  not  metal 
makes  money.  Money  is  a  fiat  of  sovereignty  without  regard 
to  intrinsic  value.  Law,  not  its  material  fixes  the  value  of  money. 
— U.  S.  Constitution. 

When  considering  the  above  facts,  how  weak  seems  the  de- 
claration that  "law  cannot  produce  value." 


CHAPTER  XLI. 


MONEY  PANICS,  HARD  TIMES,  ITS  CAUSE  AND  PRE- 
VENTION. 

Times  are  hard,  this  we  all  know,  as  we  hear  of  it,  see  its  effects, 
and  daily  feel  it  to  our  unavoidable  regret. 

It  would  seem  from  the  past  history  of  the  civilized  world, 
the  cause  or  causes  of  money  panics,  hard  times  and  their  pre- 
vention should  by  this  time  be  well  understood.  As  many  times 
during  the  past  centuries  the  civilized  nations  have  been  afflicted 
by  them,  and  they  were  always  brought  on  in  the  United  States 
by  a  short  supply  of  money  in  circulation,  which. was  effected 
by  the  following  and  other  causes. 

ist.  Money  famines  and  panics  have  been  caused  more  than 
once  by  a  rapid  increase  of  wealth,  business  and  population.  This 
country  in  its  normal  condition  adds  yearly  more  than  one  million 
to  its  population  and  near  two  billions  to  its  wealth  and  of  course 
should  have  a  corresponding  increase  of  money,  to  keep  pace 
with  its  population,  wealth  and  business. 

2nd.  A  sum  should  be  yearly  added  to  our  circulating  medium 
to  make  good  the  deficiency  arising  from  fire,  shipwreck  and 
other  losses,  including  coin  exported  in  excess  of  gold  imports. 
If  these  losses  are  not  made  good,  the  country  must  suffer  for 
want  of  money. 

Tariffs,  high  or  low  never  produced  a  money  panic.  Our 
people  have  suffered  desolating  money  panics  under  both  high 
and  low  tariffs.  Free  trade  England  has  suffered  from  money 
panics  and  high  protection  Germany  has  been  similarly  afflicted. 

3rd.  Law  has  caused  money  panics.  As  in  1873  when  in 
pursuance  of  law,  between  one  and  two  billion  dollars  of  Green- 
backs and  other  treasury  notes  were  withdrawn  from  circulation 
and  destroyed,  by  which  means,  the  currency  of  the  country  was 
reduced  in  a  few  years  from  fifty-eight  dollars  per  capita,  to 
thirteen  dollars,  which  resulted  in  the  1873  money  panic. 


191 

A  similar  affliction  was  forced  upon  England  by  the  law,  after 
its  wars  with  Napoleon,  when  it  returned  to  "specie  payments" 
by  destroying  most  of  its  paper  currency,  which  forced  upon  the 
people  of  Britain,  one  of  the  worst  money  afflictions  they  had 
ever  suffered. 

4th.  Money  constantly  retained  in  Government,  State,  County, 
municipal  and  trust  treasuries,  and  money  retained  as  bank  re- 
serves, misers'  hoardings,  private  pockets  and  elsewhere,  that 
never  circulate,  have  a  tendency  to  make  money  scarce,  and 
should  not  be  reckoned  as  money  in  circulation.  So,  it  may 
readily  be  seen  how  business  may  suffer  when  its  life  blood  is 
constantly  decreasing,  and  population,  production  and  business 
increasing  year  by  year,  and  each  requiring  more  money. 

5th.  The  greatest  and  most  prolific  of  all  causes  of  money 
panics  are  private  depositors  who  have  more  money  on  deposit 
than  there  was  money  in  the  country.  In  1893,  over  four  billion 
dollars  deposited  and  only  one  thousand  six  hundred  million  to 
pay  it. 

Loss  of  confidence  in  the  banks  and  a  slight  financial  alarm 
impelled  depositors  to  demand  the  return  of  their  money.  They 
got  some  of  it,  but  its  withdrawal  caused  the  collapse  of  many 
banks,  and  compelled  all  banks  to  husband  their  resources — re- 
fuse discounts  and  demand  the  return  of  their  loaned  money. 

The  people  having  their  business  running,  debts  to  pay  and 
no  money  obtainable,  caused  them  great  distress,  physical,  men- 
tal and  financial.  Ambition  stimulated  them  to  push  ahead  and 
endeavor  to  go  on  with  business  without  money,  which  they 
found  impossible,  hence  the  failures  brought  on  by  a  deficiency 
of  money  in  business  channels.  This  states  of  things  comes  on 
gradually  and  spreads  and  increases  day  by  day,  as  in  Benjamin 
Harrison's  Presidential  term,  running  through  1889,  1890,  1891 
and  1892,  money  yearly  getting  scarcer  and  tighter  from  most 
of  the  above  numbered  causes,  and  in  consequence  commercial 
failures  increase  year  by  year  as  in  the  years  above  named  when 
46,162  commercial  failures  took  place.  This  was  the  state  of  the 
country,  March  4th,  1893,  when  the  Democratic  party  went  into 
power.  It  is  evident  from  the  above  state  of  facts,  the  business 
of  the  country  was  resting  upon  a  magazine  of  dynamite — so  to 
speak — that  only  required  one  spark  to  ignite  it,  but  it  got  two, 
one  from  the  Democratic  party,  when  it  convened  Congress  to 


1 92 

repeal  the  Sherman  Silver  Law,  by  which  Act  the  business  of 
the  country  was  deprived  of  $4,500,000  new  money  monthly. 
The  second  spark  was  applied  by  the  enemies  of  the  Democratic 
party  howling  over  "Tariff  Reform,"  as  proposed  by  the  Demo- 
c-ats.  So  the  two  parties  exploded  the  dynamite  and  never  since 
the  formation  of  the  Government  was  so  much  damage  done  by 
a  financial  explosion.  The  first  trembling  of  the  explosion  so 
frightened  depositors  that  a  large  part  of  the  five  million  deposi- 
tors went  for  their  money,  and  it  is  said  recovered  one  billion  dol- 
lars of  the  four  billion  they  had  on  deposit  and  securely  hid  it.  The 
money  thus  withdrawn  from  circulation  constituted  near  two- 
thirds  of  all  the  money  of  the  country,  leaving  only  six  hundred 
million  dollars  to  do  the  business  of  the  country  and  supplying 
banK  reserves  and  the  treasury  and  other  hoardings  named  above. 

The  explosion  of  1893  demolished  16,000  mercantile  establish- 
ments, 714  banks,  about  the  same  number  of  manufacturing 
plants  shut  down,  and  two  million  laborers  thrown  out  of  em- 
ployment and  their  labor  lost  to  the  country,  and  billions  of 
dollars  of  property  disappeared  by  depreciation  in  its  value. 
And  in  consequence  many  foreclosures  have  taken  place  and 
mortgagors  turned  from  their  homes  and  become  tenants,  day 
laborers  or  tramps,  or  went  to  their  graves  broken  hearted  or  as 
suicides,  preferring  death,  to  seeing  loved,  ones  driven  from  their 
homes  to  suffer. 

The  above  are  most  of  the  causes  of  money  panics  and  hard 
times,  in  the  United  States,  and  some  of  their  disastrous  effects 
upon  the  country -since  1888,  and  the  end  is  not  yet. 

Now  comes  the  question,  the  pith  of  the  story,  the  real  meat 
of  the  nut,  viz:  What  must  be  done,  what  can  be  done  to  pre- 
vent another  financial  explosion  and  the  "Hard  times,"  flowing 
from  it? 

This  question  although  of  such  overtowering  importance  is 
quite  easy  of  solution.  What  would  I  propose?  I  propose  First, 
Public  Money;  second,  Public  Money;  3rd,  And  all  the  time, 
Public  Money  as  demanded  in  these  pages  as  a  full  answer, 
and  a  complete  and  sure  prevention  of  money  panics,  and  a 
just  and  sure  settlement  of  the  money  question. 

No  one  could  claim  a  money  panic  possible  if  Government 
Banks  were  always  prepared  to  loan  money  upon  security  for 
3$  per  annum  and  the  principal  not  to  be  returned  as  long  as 


193 

the  borrower  preferred  to  pay  the  interest.  All  this  money 
whether  it  be  gold,  silver  or  paper  to  be  redeemed  by  the  borrower 
or  his  property,  thus  relieving  the  Government  from  all  money 
redemption  burdens. 

Having  past  through  several  money  flurries,  money  famines, 
and  money  panics  in  the  United  States,  seen  their  effects  upon 
the  people,  and  having  investigated  their  cause  and  prevention, 
I  unhesitatingly  affirm,  with  no  fear  that  I  can  be  answered,  that 
a  Public  Money,  a  money  of  the  people,  by  the  people,  for  the 
people,  a  money  created,  owned  and  loaned  by  the  people  through 
their  legally  authorized  agents,  would  prevent  all  money  panics, 
and  of  course  save  the  loss  and  suffering  engendered  by  them. 
Private  money  can  never  do  this.  Private  money  has  been  our 
only  money  and  money  panics  has  been  its  legitimate  fruit  every 
ten  years  on  an  average.  Public  money  administered  as  set 
forth  in  these  pages  is  the  only  remedy.  The  further  advantages 
of  public  money  being  set  forth  more  fully  elsewhere,  we  will 
let  that  suffice. 


CHAPTER  XLII. 

SUSPENSION  AND   RESUMPTION   OF   SPECIE   PAY- 
MENTS. 

How  unstatesmanlike  and  strange  it  seems  for  a  rich  and 
powerful  nation,  that  from  slight  financial  trouble,  specie  pay- 
ments are  suspended,  gold  and  silver  coin  leaves  the  channels  of 
trade,  and  to  keep  business  alive,  resorts,  to  the  issue  of  a  paper 
currency,  and  although  none  were  ever  issued  upon  a  correct 
basis  (not  even  our  Greenbacks)  they  have  carried  nations 
through  some  of  their  worst  difficulties,  enabling  them  to  prose- 
cute wars,  keep  their  industries  running,  and  in  fact  to  prosper  in 
some  cases  as  never  before,  which  was  the  case  with  Great 
Britain  from  1801  to  1824,  and  the  United  States  from  1862  to 
1873,  as  imperfect  as  these  currencies  were,  they  performed  what 
could  not  be  done  with  gold  and  silver  coin,  as  both  nations  en- 
deavored to  do  that  but  failed.  Shall  we  call  it  statesmanship, 
that  leads  nations  into  difficulty,  out  of  which  they  cannot  get 
only  by  issuing  a  paper  currency?  and  after  they  get  through, 
the  storm  subsides,  sunshine  and  fair  weather  returns,  abandon 
their  true  friend  (the  paper  currency)  for  those  cowardly  sneaks — 
gold  and  silver  coin,  that  always  run  away  and  hide  in  times  of 
trouble. 

What  would  we  think  of  a  captain  and  crew  who  put  to  sea 
in  what  they  considered  a  staunch  and  safe  vessel,  good  for  all 
weathers,  and  it  does  sail  safely  along  in  ordinary  times,  but  by 
and  by  a  storm  threatens,  the  wind  gets  stronger,  the  waves  roll 
high,  the  storm  increases  in  fury.  The  wind  howls  through  the 
rigging,  a  cyclone  is  upon  them,  the  ship  labors,  shows  its  weak- 
ness, its  timbers  loosen,  leaks  appear  and  the  only  safety  for 
captain  and  crew  is  to  abandon  the  fast  sinking  ship  for  one 
more  worthy,  which  they  do  and  gallantly  ride  out  the  storm. 
After  fair  weather  returns,  no  more  danger  in  sight,  the  captain 


195 

and  crew  begin  to  sigh  for  the  old  sunken  ship,  in  which  they 
had  passed  so  many  pleasant  days,  and  finally  after  much  labor 
and  loss  bring  the  old  hulk  to  the  surface,  abandon  the  good 
ship  that  carried  them  safely  through  the  storm,  and  start  on 
another  voyage  in  the  old  snip.  Would  we  call  such,  wise  sailors  ? 
Would  any  sane  man  do  so  unwise  an  act,  particularly  after  the 
old  ship  had  failed  him,  two,  three  or  more  times  ?  Yet  civilized 
nations  have  returned  to  their  old  worthless  hulks — specie  pay- 
ments— time  and  time  again,  and  as  often  had  to  take  to  the 
safer  craft — a  paper  currency — which  carried  them  through 
financial  cyclones,  wars  and  other  national  troubles.  Returning 
to  specie  payments  would  not  be  so  bad,  if  it  could  be  done  with- 
out violence  to  business,  both  while  being  done  and  after  re- 
sumption was  fairly  inaugurated,  but  this  has  never  yet  been  done, 
and  we  believe  it  never  can  be.  As  the  first  thing  is  not  only 
to  accumulate  gold  and  silver  coin  for  redemption  purposes,  but 
to  bond  and  otherwise  reduce  the  currency  (the  business*  life 
blood  of  the  country),  so  there  will  not  be  so  much  currency  to 
be  redeemed  with  coin.  As  this  policy  is  pursued,  currency 
shrinks  in  amount,  business  and  values  correspondingly  shrink, 
and  after  resumption  is  inaugurated,  there  is  no  more  gold  and 
silver  in  the  country  than  there  was  before  resumption  was  at- 
tempted, but  there  is  much  less  currency,  less  business,  less  prop- 
erty, more  poverty  and  more  suffering.  Values  have  shrunken 
to  correspond  to  the  decrease  of  currency.  All  values  shrink 
except  money.  As  property  decreases  in  value  money  increases. 

To  return  to  specie  payments  after  a  long  suspension  invariably 
brings  a  money  panic,  business  and  production  shrinks,  laborers 
are  idle,  merchants  fail,  farmers  are  driven  from  their  mortgaged 
farms,  the  products  of  farm  and  factory  are  sold  at  price  below 
cost  of  production,  times  are  hard  and  still  hardening,  business 
uncertain  and  feverish,  industries  depressed,  men,  women  and 
children  suffering  for  the  necessaries  of  life,  mechanics  part  with 
their  tools  for  bread,  bread  riots  threatened,  money  partially  gone 
out  of  use. 

The  1873  money  panic  was  brought  on  the  country  by  Con- 
gress having  bound  a  burden  upon  the  people,  by  bonding  and 
destroying  most  of  our  national  money  by  hundreds  of  millions, 
that  identical  money  that  had  given  life  and  activity  to  business 
and  carried  the  country  safely,  and  unprecedently  prosperous 


196 

through  the  Civil  War,  by  which  act,  in  striving  to  get  back  to 
specie  payment  it  reduced  the  currency  from  $2,111,678,680  in 
1865  to  about  eight  hundred  millions  in  1875,  and  this  later 
amount  was  to  supply  a  business  territory  near  twice  as  large,  as 
the  larger  amount  supplied  during  the  war.  Seemingly  every  act 
touching  our  currency  either  depreciated  it  in  value  or  decreased 
it  in  quantity,  which  depressed  business,  hampered  enterprise  and 
shrank  all  values  but  that  of  money  and  of  course  forced  on 
the  1873  panic. 

Should  anything  else  have  been  expected  from  such  unwonton 
destruction  of  our  business  life  blood?  (over  one  thousand  three 
hundred  million  dollars  in  three  years  to  make  sure  of  specie  re- 
sumption when  the  set  time  arrives. 

Even  our  railroads  toward  which  public  attention  is  frequent- 
ly directed  on  account  of  strikes  and  riots,  are  more  sinned  against 
than  sinning.  As  these  contraction  policies,  and  keeping  money 
so  restricted  in  amount,  checks  business  and  production,  conse- 
quently curtails  railroad  business  and  profits,  forced  many  into 
bankruptcy,  and  others  into  curtailing  their  expenses  to  avoid 
bankrupt  courts,  which  caused  most  of  the  unpleasant  strikes 
and  riots  among  railroad  employes  in  past  years,  as  well  as  idle- 
ness, suffering  and  death  among  other  industries,  yea  even  the 
bodies  of  men,  woman  and  children,  who  were  created  in  the 
image  of  God,  are  made  to  shrink,  wrinkle  and  suffer,  caused  by 
this  legal  shrinkage  and  hoarding  of  business  life  blood,  until 
cheerfulness  has  left  their  countenance  and  joy  and  hope  their 
hearts,  demorilization  and  despair  sieze  upon  them,  their  human 
natures  seem  so  changed  they  would  as  soon  brave  death  trying 
to  avenge  their  supposed  wrongs  as  to  continue  to  face  troubles 
more  annoying  than  death. 

Many  enterprising,  industrious  men  of  business  knowledge, 
influence  and  wealth,  seeing  their  property  shrink  from  day  to 
day  until  all  was  gone,  and  creditors  unsatisfied  and  clamorous 
for  more,  wives  and  children  reared  in  luxury,  now  reduced  to 
want,  have  sought  death  by  suicide  for  relief  from  the  dismal 
sight.  Now  the  unwelcome  flash  comes  from  the  east  to  our 
ears,  and  enters  our  hearts  while  we  write,  that  our  soil  once  con- 
secrated to  liberty,  has  been  reddened  by  the  blood  of  wealth 
producing  citizens  that  have  suffered  and  been  maddened  by  the 


refusal  of  their  oft  repeated  petitions  for  remunerative  employ- 
ment. 

The  flames  of  the  incendiary  as  in  this  case,  ascends  to 
heaven  as  witness  that  the  law  of  nature  has  been  broken  by 
refusing  man  the  privilege  of  eating  bread  by  the  sweat  of  his 
brow,  and  the  property  and  lives  now  sacrificed  on  that  account 
seems  to  come  as  a  partial  atonement  for  a  broken  law  and  that 
still  greater  wrong  and  waste  of  life  and  property  forced  upon 
the  country  by  Congress  continuing  to  adhere  so  tenaciously  to 
the  old  system  of  private  money  which  has  brought  upon  the  coun- 
try all  the  financial  evils  it  has  ever  suffered.  If  this  cruel  private 
money  system  and  periodical  issue  and  contraction  policy  with 
its  suspension  and  resumption  of  specie  payments,  is  continued, 
idleness,  strikes  and  tramps  must  continue  to  increase,  and  prop- 
erty values,  productions,  railroads  and  other  business  must  peri- 
odically continue  to  decrease.  Thus  forcing  comparatively  less 
employment  and  less  pay  for  labor,  and  the  next  strike  of  the 
employed  may  be  in  combination  with  the  unemployed  millions  in 
our  country  now  demanding  "work,  bread  or  blood." 

As  public  money  is  the  one  only  sure  remedy  for  most  if  not 
all  of  the  above  evils,  how  important  then,  that  it  be  inaugurated 
as  set  forth  in  these  pages,  as  then  there  would  be  no  cause  or 
necessity  for  discussing  the  question  of  "currency  issue,"  "cur- 
rency redemption,"  "suspension  and  resumption  of  specie  pay- 
ments." "Thirty  or  fifty  dollars  per  capita."  As  money  would 
be  distributed  in  obedience  to  the  natural  law  of  supply,  viz: 
Demand  for  use,  that  being  the  natural  law  of  volume,  working 
under  that  law,  there  would  never  be  too  much  or  too  little 
money  in  circulation. 

If  we  could  have  a  public  money  system,  such  as  is  advocated 
in  these  pages,  prosperity,  plenty  and  peace,  would  return  to 
bless  our  country.  The  people  would  be  the  money  power,  and 
tlu'ir  agents  would  hold  the  keys  to  the  money  chests,  and  always 
open  them  whenever  a  legal  demand  is  made  upon  them  for 
money.  Then  "hard  times  come  again  no  more."  On  account 
of  our  exclusive  use  of  private  money. 


CHAPTER  XLIII. 


GOLD  STANDARD  AND  BIMETALLISM. 

The  gold  standard  doctrine  as  now  taught  and  administered 
is  wrong  in  theory  and  an  outrage  in  practice,  as  it  confines  all 
production  and  business  to  what  may  be  transacted  by  the 
limited  amount  of  gold  available  as  money  and  for  gold*  redemp- 
tion purposes. 

A  Government  banking  department  as  herein  advocated  ren- 
ders possible  a  gold  standard  and  bimetallism  at  the  same  time, 
and  gold  and  silver  coin  at  a  ratio  of  16  to  I  and  the  Govern- 
ment bank  note  kept  on  a  parity  without  a  gold  coin  redemption 
yet  it  makes  ample  provision  for  justly  and  acceptably  redeem- 
ing all  money  circulated  by  this  department. 

The  administration  or  circulation  of  currency  under  our  present 
gold  standard  theory,  is  one  thing,  and  the  creation  and  circula- 
tion of  money  by  virtue  of  the  above  named  banking  department 
with  its  gold  standard  theory,  is  an  entirely  different  thing.  The 
aim  apparently  of  our  present  gold  standard  bearers  is  to  make 
gold  coin  our  only  standard  of  value  and  our  only  money,  so  that 
silver  and  paper  currency  to  be  acceptable  measures  of  value, 
must  have  a  gold  redemption,  which  necessarily  limits  our  busi- 
ness and  money  supply  to  the  amount  of  gold  coin  available  for 
business  and  redemption  purposes. 

The  new  theory  not  only  makes  gold  coin  our  only  standard  of 
value,  but  also  makes  silver  coin  and  the  above  named  depart- 
ment note,  of  the  same  significance  for  all  domestic  money  pur- 
poses as  coined  gold  made  a  full  tender.  This  does  not  limit 
money  to  the  amount  of  gold  available  for  business,  but  it  has 
also  all  silver  and  all  suitable  paper  to  coin  and  stamp  with  legal 
tender  sovereign  power,  if  demand  requires  it.  This  would  be 
public  money  created  and  owned  by  the  people  and  loaned  by 
them  through  their  banking  servants  upon  demand  to  the  Gov- 
ernment, to  States,  to  corporations  and  to  individuals  upon 


199 

securities  of  unquestioned  value,  such  as  Government  and  State 
bonds  and  bullion  at  90$  of  their  gold  market  value,  and  upon 
real  estate  at  50$  of  its  taxable  value  with  interest  at  3$  per  an- 
num, all  to  be  redeemed  by  the  borrower  or  by  his  property,  the 
same  as  the  National  Bank  note  is  now  redeemed,  which  re- 
deemer it  may  be  seen  is  ample  for  the  work  without  committing 
or  embarrassing  the  Government.  Under  this  system  there 
would  be  ample  money  for  all  purposes  and  a  full  redemption  for 
all  money  at  a  gold  standard  value. 

A  thing  to  be  noted.  If  other  money  under  this  system  is. 
made  to  do  most  of  the  labor  now  done  by  gold  coin  as  money, 
and  if  other  values  are  made  as  acceptable  redeemers  as  gold 
coin  now  is,  then,  this  fact  presents  itself,  viz:  Gold,  being  thus 
relieved  from  much  of  its  present  labor,  will  not  be  so  much  in 
demand,  as  silver  coin  and  this  department  note  will  fill  the  place 
of  gold  coin  for  all  domestic  money  purposes,  all  being  public 
money,  a  full  tender,  an  honest  representative  of  value  by  being 
secured  by  specific  property  for  their  final  redemption.  This  be- 
ing all  true,  gold  will  cease  increasing  in  value  as  to  many  com- 
modities and  may  recede  in  value  to  what  it  was  35  years  ago  as 
to  many  of  life's  necessities. 

It  must  not  be  expected  that  the  blessings  arising  from  a  gold 
standard  bimetallism  and  Government  banks  of  savings  can  be 
enjoyed  to  the  full  without  the  inauguration  of  public  money. 
That  is  money  created,  owned  and  loaned  by  the  people.  These 
important  results  cannot  be  enjoyed  by  the  exclusive  use  of 
private  money.  Another  thing  to  note  is  the  fact,  that  under 
former  bimetallism,  gold  standard  and  private  money  combination, 
money  flurries  and  money  panic  were  apparently  nourished  but 
seldom  if  ever  prevented,  but  no  one  denies  the  power  of  public 
money  to  arrest  and  prevent  all  money  panics. 

To  restore  bimetallism  under  our  present  system  of  private 
money  would  simply  increase  private  money  which  would  only 
give  temporary  relief  until  another  financial  fright  strikes  the 
people,  then,  all  money  being  private  money  its  owners  could 
hoard  it  all,  as  readily  and  effectively  as  it  has  been  hoarded 
the  past  9  years  and  with  like  dreadful  results,  the  greater  quan- 
tity would  not  prevent.  Private  money  is  now  based  on  gold, 
public  money  would  be  based  upon  real  estate,  Government  and 
State  bonds  and  bullion  under  the  above  banking  system. 

Private  money,  is  money  put  in  circulation  by  the  Government 


200 

without  security — gold'  and  silver  coin,  greenbacks  and  other 
forms  of  Treasury  notes  are  private  money — hence  it  is  not  a 
representative  of  value  as  all  money  should  be.  It  is  not  based  on 
anything.  The  expectation  is  that  all  currencies  under  our  private 
money  regime  will  be  maintained  on  a  parity  by  a  promise  of  a 
gold  exchange  and  a  gold  redemption.  This  promise  works  un- 
til depositors  gets  a  financial  fright  and  demand  their  money 
in  gold,  then  the  fat  is  in  the  fire  there  is  not  enough  gold  to  go 
around  and  being  a  coward  it  sneaks  into  hiding.  And  yet  it  is 
claimed  all  our  currencies  and  business  is  based  upon  gold,  which 
renders  our  money  system  analogous  to  an  inverted  pyramid 
whose  apex  is  many  times  larger  than  its  base,  thus: 

Our  property,  business  and  money  resting 
upon  such  an  inadequate  foundation,  is  it 
any  wonder  that  we  are  so  frequently  troub- 
led with  financial  earthquakes  that  shakes, 
destroys  and  fills  the  heart  of  man  with  fear 
when  the  tottering  structure  tumbles  down, 
which  it  always  does  in  times  of  money  panic,  when  its  gold 
foundation  is  extracted  and  hid  away. 

Public  money  resting  as  it  would  upon  bullion,  bonds  and  real 
estate  by  which  every  penny  of  it  would  be  secured,  would  be  a 
solid  symmetrical  structure  whose  base  would  be  many  times 
larger  than  its  top,  thus : 

Showing  that  when                  » — v  the     money     of     the 

country     rests     upon                /      \  the    property    of    the 

country      as      public             7            \  money  surely  would, 

the  foundation  of  /  \  business  and  produc- 
tion would  be  solid  /  \  and  lasting,  and 
could  not  be  shaken  /  ,  A  by  financial  earth- 
quakes. 

As  above  stated,  the  law  authorizing  this  banking  system 
makes  gold  coin  the  standard  of  all  values  and  all  money,  whether 
it  be  gold  and  silver  coin,  or  Government  bank  notes.  The  value 
of  all  are  fixed  by  law  to  that  of  the  standard. 

Under  this  just  law,  Government  bank  notes,  coined  silver 
and  coined  gold,  would  all  act  as  standard  money,  as  each  would 
pay  as  much  debt,  tariff  and  tax  and  purchase  as  much  property, 
and  inaugurate  permanently  bimetallism.  This  Government 
banking  department,  public  money  and  bimetallism  as  above 


201 

would  change  the  financial  center  of  the  world  from  Europe  to 
America.  As  no  nation  ever  had  a  banking  establishment  of 
such  great  power  and  significance  as  this  would  have.  All  the 
people  owning  the  bank,  participating  in  its  profits  and  keeping 
gold  and  silver  coin,  and  paper  money  on  a  parity  without  gold 
redemption,  would  be  a  feat  the  world  has  never  seen.  Yet  all 
money  would  have  an  acceptable  redemption.  Gold,  silver  and 
this  Government  note  would  be  placed  on  a  parity  as  money:  ist. 
by  Congress  declaring  them  all  a  full  legal  tender  for  all  domestic 
money  purposes  the  same  as  gold  coin  now  is,  and  the  same  as  the 
first  $60,000,000  of  greenbacks  was  made  equal  to  gold  coin  as 
money. 

2nd.  They  would  all  be  continued  on  a  parity,  by  being  all 
secured  upon,  or  by  such  property  as  Congress  rnay  indicate. 
The  same  way  as  the  National  Bank  note  is  kept  at  par  by 
security,  whether  the  bank  that  issues  them  be  alive  or  dead. 

As  either  of  the  above  ways  would  be  ample  to  keep  all  at  a 
parity,  and  as  public  money  would  enjoy  both  advantages,  its 
parity  would  be  self  evident,  having  past  the  point  of  argument. 

Is  it  possible  that  money  coined  and  issued,  a  full  legal  tender, 
fully  secured,  with  the  credit  of  all  the  people  behind  it,  could  ever 
be  depreciated?  Impossible.  Money  thus  created  and  circulated 
never  was  and  never  can  be  depreciated,  although  it  be  stamped 
upon  silver  or  paper  or  other  cheap  material. 

Bimetallism  as  taught  by  bimetallists  now,  means  private 
money,  money  belonging  to  private  parties.  Bimetallism  under 
the  creation  and  distribution  of  this  Government  banking  depart- 
ment, means  public  money  belonging  to  all  the  people.  The  pro- 
duction and  distribution  of  public  money  by  the  above  named 
department,  will  tend  to  check  the  accumulation  of  large  fortunes 
by  loaning  money  on  usury  and  interest.  This  has  been  the 
great'lever  used  by  money  lenders  to  change  property  from  those 
who  produce  it,  to  their  own  possession.  Millions  of  the  human 
family  have  been  driven  from  their  home  by  usury  and  high 
rates  of  interest.  No  doubt  this  lever  used  by  the  Jews  to  acquire 
property  without  physical  labor  has  caused  their  expulsion  from 
Russia  and  other  countries. 

And  the  use  of  that  same  lever  by  the  Jews  of  France  has 
aroused  the  hatred  of  the  French  people  almost  to  the  point  of 
revolution  and  bloodshed.  They  labor  not,  neither  do  they  spin, 

14 


2O2 

yet  they  are  said  to  have  acquired  four-fifths  of  the  personal 
property  of  that  country  by  usury,  interest,  rents,  etc. — although 
their  numbers  are  relatively  small — taking  the  wealth  they  have 
acquired  from  those  who  produced  it,  and  by  means  of  the 
wealth  thus  acquired  they  command  an  influence  in  high  places 
which  enables  them  to  shape  legislation  in  their  own  interest. 
It  is  presumed  there  is  no  country  that  uses  money  that  is  not 
afflicted  with  high  interest  and  usury.  How  important  then  to 
keep  peace,  prosperity  and  content  in  a  country  is  the  inaugura- 
tion of  public  money  as  above. 

If  a  limited  and  wisely  conducted  private  bank,  makes  money 
for  its  stockholders,  what  should  be  expected  from  an  unlimited 
banking  department  of  the  people,  by  the  people,  for  the  people, 
but  wealth  and  prosperity? 


CHAPTER  XLIV. 


INTERNATIONAL  BIMETALLISM. 

"The  wholesome  and  final  way  to  expand  the  currency,  is  to 
establish  an  international  bimetallism.  That  is,  by  mutual  agree- 
ment and  co-operation  among  commercial  nations,  to  allow  the 
free  coinage  of  gold  and  silver  at  a  fixed  ratio  of  value."  We 
frequently  see  in  substance  the  above  declaration,  which  intimates 
a  final  settlement  of  the  money  question  by  international 
bimetallism.  We  fail  to  see  the  point.  A  declaration  upon  such 
an  important  subject  to  have  weight  should  be  accompanied  by 
unimpeachable  proof  or  upon  a  line  of  sound  reasoning.  How 
our  currency  could  expand  by  such  international  agreement  is 
difficult  to  determine,  as  all  gold  and  silver  metal,  whether  coined 
or  uncoined  are  now  used  internationally  at  their  market  value. 

It  is  not  claimed  that  foreign  business  would  be  any  greater  by 
using  this  international  bimetallic  currency,  and  our  supply  of 
money  for  home  use  would  be  but  slightly  increased  as  gold  is 
now  enjoying  free  coinage  and  there  is  more  silver  now  coined 
in  America  than  the  people  want  to  use  as  money  and  most  of  it 
the  Government  has  to  care  for  at  great  expense  and  issue  a 
certificate  for  it  to  be  used  as  money  in  its  stead.  If  silver  is 
too  bulky  now  for  home  use  only  for  small  transactions,  it  would 
be  equally  objectionable  as  an  international  money,  besides  inter- 
national money  transactions  would  be  too  small  to  effect  home 
business  any  more  than  it  does  now,  as  money  then,  would  no 
more  be  required  to  settle  trade  balances  than  bullion  is  now 
which  is  comparatively  a  small  item,  as  W  of  all  our  foreign 
purchases  is  settled  by  interchange  of  products.  So  it  may  be 
seen  it  is  not  international  money  that  is  required  to  increase  pro- 
ducts and  render  home  business  permanently  remunerative,  and 
the  people  prosperous,  but  more  national  money  and  a  better 
method  of  distribution  is  what  is  required,  as  our  home  ex- 
change is  said  to  be  above  $170,000,000,000  annually,  while  our 


2O4 

foreign  exchange  approximately  is  only  $2,000,000,000  and  A 
of  that  is  paid  with  products. 

Where  the  great  advantage  of  international  bimetallism  comes 
in  we  are  unable  to  see,  how  a  million  dollars  in  international 
coin  paid  abroad  to  settle  balances,  is  a  going  to  assist  home 
business,  any  more  than  if  the  debt  was  paid  in  bullion  as  at  pre- 
sent, we  can't  see.  If  there  should  be  some  advantage  it  would 
be  too  small  to  effect  home  exchange  that  reaches  $170,000,000,- 
ooo  yearly. 

If  the  fixed  value  of  the  international  coin  should  be  greater 
than  their  bullion  value,  it  would  be  an  international  fiat  money, 
should  this  be  so,  why  not  use  the  more  convenient  and  less 
valuable  material,  paper  for  international  money,  as  A  of  all 
civilized  money  transactions  is  effected  with  paper  in  some  shape. 
If  international  money  is  to  be  limited  to  available  bullion,  or  to 
international  private  money  as  all  national  money  now  is,  then 
we  must  ever  be  cursed  with  a  short  supply,  with  money  flurries 
and  money  panics  as  at  present. 

If  it  is  right  to  have  international  bimetallism,  national  bimetal- 
lism must  also  be  right,  the  more  so  when  it  can  be  so  readily, 
effectively  and  profitably  inaugurated  as  portrayed  in  these 
pages  and  without  the  co-operation  or  consent  of  other  nations. 

In  conclusion  let  me  say  to  the  American  people; 

If  you  want  national  bimetallism,  that  is,  paper  and  silver 
money  made  as  valuable  as  gold  for  home  use  as  money,  and 
enough  of  it,  elect  a  Congress  that  will  enact  the  within  bill  into 
a  law. 

If  you  want  to  be  the  money  power  of  the  country  in  place  of 
those  who  now  pose  as  such,  enact  the  bill. 

If  you  want  immunity  from  money  panics  that  rack  and 
wreck  the  business  of  our  country  every  few  years,  enact  the  bill. 

If  you  desire  to  own  and  enjoy  the  blessings  and  the  income 
of  the  richest,  the  most  powerful  and  the  most  important  banking 
institution  the  world  has  ever  known,  enact  the  bill. 

If  you  desire  Government  savings  banks,  enact  the  bill. 

If  you  want  to  free  the  country  from  the  grasp  of  European 
and  Shylock  money  lenders,  enact  the  bill. 

If  you  want  the  most  valuable,  the  most  convenient  and  the 
surest  money  known,  whose  supply  is  ample  and  always  obtain- 
able upon  security  at  an  interest  of  3$  per  annum,  enact  the 


205 

bill.  As  then  your  money  would  be  gold  and  silver  coin  and 
Government  bank  notes,  and  always  on  a  parity  for  home  use. 

If  you  want  representative  money  and  redeemable  in  the  value 
or  security  it  represents,  enact  the  bill. 

If  you  want  a  money  that  will  always  circulate  when  secured 
wherever  wanted  in  all  this  broad  land  at  an  equitable  rate  of  in- 
terest, enact  the  bill.  As  then,  if  money  was  idle  in  a  Govern- 
ment bank  and  a  merchant,  a  manufacturer,  banker  or  farmer 
should  demand  it,  his  demand  must  be  met — demand  for  use 
being  the  law  of  volume — as  no  money  can  lay  idle  in  any  Gov- 
ernment bank  when  the  business  of  the  country  is  suffering  for 
want  of  it.  So  enacting  the  bill  is  the  only  financial  salvation  for 
the  American  people. 

Such  a  system  of  money,  such  a  banking  system  as  the  above 
bill  would  authorize,  would  be  of  the  people,  by  the  people  and 
for  the  people's  use,  profit  and  enjoyment. 


CHAPTER  XLV. 


A  SOUND,  AMPLE  AND  FLEXIBLE  CURRENCY. 

"I  am  for  a  sound  currency  where  every  dollar  is  as  good  as 
every  other  dollar,"  "A  stable  monetary  unit,"  "Honest  money," 
"A  sound,  safe,  stable  currency."  "We  demand  a  national 
currency,  safe,  sound  and  flexible,  issued  by  the  general  Gov- 
ernment only,  a  full  legal  tender  for  all  debts,  public  and  private, 
a  just,  equitable  and  efficient  means  of  distribution  direct  to  the 
people." 

"It  is  the  duty  of  the  Government  to  furnish  sound,  reliable, 
constitutional  money  for  the  people."  "A  sound,  safe  currency 
upon  a  gold  basis."  "I  think  such  a  currency  feasible,  and  I  am 
of  the  opinion  that  it  will  be  brought  about."  Ex-Secretary 
Windom  said,  "The  ideal  financial  system  would  be  one  that 
should  furnish  just  enough  of  absolutely  sound  currency  to  meet 
the  legitimate  wants  of  trade  and  no  more,  and  that  should  have 
enough  elasticity  of  volume  to  adjust  itself  to  the  varying  neces- 
sities of  the  people.  I  know  this  seems  difficult  of  attainment, 
but  it  is  substantially  possible.  Could  such  a  circulating  medium 
be  secured  the  grave  commercial  disasters  which  threaten  our 
future  might  be  avoided.  I  am  thoroughly  con- 

vinced that  a  better  method  can  be  devised  which  will  in  a  large 
degree  place  the  power  of  expansion  and  contraction  in  the  hands 
of  the  people  themselves."  "A  system  of  banks  must  be  or- 
ganized, none  of  which  can  ever  be  broken,  where  money  can  be 
deposited  and  have  it  increase  without  any  fear  of  loss." 

The  above  quotations  from  writers  and  speakers  upon  the 
money  question  is  sufficient  to  convince  one  how  important  and 
comprehensive  a  money  system  must  be  to  fill  all  the  demands 
made  above.  Well  may  the  Secretary  say,  "I  know  this  seems 
difficult  of  attainment,  but  it  is  absolutely  possible."  Although 
the  demand  is  so  general  for  a  "good,  ample,  honest  currency," 
every  dollar  to  be  worth  one  hundred  cents  for  home  exchange 


207 

and  no  more.  Yet  but  few  suggestions  how  it  can  be  done  have 
ever  been  made,  and  most  of  those  proposed  are  for  temporary 
relief  only.  Here  permit  me  to  unhesitatingly  affirm  that  the 
bill  herein,  if  enacted,  would  furnish  the  American  people  with 
a  money  ample  in  amount  and  of  a  quality  that  would  fill  every 
demand  made  above.  The  bill  has  been  considered  by  able 
lawyers  and  by  other  able  thoughtful  men  and  they  hesitate  not 
in  declaring  it  constitutional  and  potent  enough  to  fill  every 
demand  made  above  if  enacted,  and  pronounce  it,  "as  perfect  in 
its  make  up  as  most  bills  when  first  introduced  into  Congress. 

It  is  evident  our  present  business  depression  must  pass  away 
whether  Congress  does  or  does  not  do  anything  to  restore  con- 
fidence and  business.  But  if  business  is  restored  and  prosecuted 
upon  the  old  method  with  private  money  we  must  expect  a  re- 
currence of  our  present  trouble  at  no  distant  day,  as  a  few  pros- 
perous years  and  than  a  collapse  into  a  business  depression, 
money  flurries  and  money  panics  with  all  the  losses  and  sufferings 
they  imply.  Such  has  been  the  chronic  condition  of  our  country 
since  its  first  formation.  How  important  then  that  a  money  sys- 
tem should  be  invented  and  adopted,  by  which  our  country  could 
avoid  these  periodical  trade  and  money  afflictions,  and  go  con- 
tinuously on  a  prosperous  developing  and  productive  course. 
Secretary  Windom  said,  "Could  such  a  circulating  medium  be 
secured  the  grave  commercial  disasters  which  threaten  our  future 
might  be  avoided." 

It  is  known  that  the  circulating  medium  has  not  been  secured. 
Consequently  the  "grave  commercial  disasters"  predicted  by  the 
Secretary  have  been  upon  us  the  past  nine  years,  with  a  loss  to  the 
Government  and  the  people  in  business  and  values  for  the  nine 
years  approximating  $15,000,000,000  besides  misery,  suicides,  etc. 

The  Secretary  warned  us  of  what  would  happen  if  we  did  not 
improve  our  circulating  medium,  but  he  proposed  no  way,  formu- 
lated no  plan  to  prevent  the  calamity  which  he  predicted.  Now 
we  have  in  these  pages  a  sure  plan  to  prevent  all  money  disasters 
of  a  like  nature  as  the  one  now  ending,  but  to  make  it  effectual 
it  must  be  enacted. 

The  system  outlined  in  the  bill  above  referred  to  is  broad 
enough,  and  in  every  way  comprehensive  enough,  and  durable 
enough,  to  fill  every  demand  as  long  as  the  country  endures. 

If  Congress  had  empowered  the  administration  nine  years  ago 
to  loan  money  to  manufacturers,  merchants,  mine  owners,  farm- 


208 

ers  and  all  other  citizens  as  contemplated  by  the  above  bill,  our 
present  money  panic  could  not  have  occurred,  and  if  Congress 
should  now  enact  the  bill  the  panic  would  at  once  be  arrested 
and  no  more  could  occur  under  the  working  of  this  system. 

The  details  of  the  within  bill  may  be  improved  or  amended, 
but  the  quality  of  its  money,  the  party  to  make  and  distribute 
it,  the  way  it  must  be  distributed,  and  the  party  who  receives 
the  profits  of  the  business  can't  be  much  improved. 

We  beg  the  reader  before  condemning  this  money  system  to 
answer — to  your  own  mind  at  least — the  arguments  in  its  sup- 
port, contained  in  this  volume ;  you  will  find  them  more  numerous 
than  were  ever  used  in  support  of  any  measure  ever  yet  intro- 
duced into  the  Congress  of  these  States,  and  most  likely  your 
would-be  objections  are  all  there  answered. 


CHAPTER  XLVI. 


SETTLING  THE  MONEY  QUESTION. 

A  just  and  permanent  settlement  of  the  money  question,  would 
be  the  most  important  financial  question  ever  settled  by  man, 
for  the  welfare  and  happiness  of  our  race.  The  McKinley  tariff, 
the  free  coinage  of  silver  and  gold,  the  further  issue  of  green- 
backs and  other  treasury  notes  would  be  as  a  drop  to  the  bucket 
by  comparison  in  its  benefits. 

A  just  settlement  of  the  money  question  would  be  the  freedom 
of  production  and  trade  from  the  evil  effects  of  our  present  private 
Shylock  money  system,  that  exacts — according  to  the  last  United 
States  census — from  i$  per  annum  to  3$  per  month  interest  for 
the  money  tool  to  do  business  with,  which  is  said  to  average  7$ 
per  annum,  which  is  over  4$  per  annum  greater  than  that  same 
money  would  yield  invested  in  the  industries,  if  so  invested  its 
yield  would  be  less  than  3$.  So  the  saving  in  interest  on  our 
$18,000,000,000  debt,  would  be  over  $700,000,000  yearly.  Quite 
an  item  it  must  be  confessed,  to  be  saved  by  the  settling  of  the 
money  question,  by  inaugurating  public  money  and  an  equitable  in- 
terest as  outlined  in  these  pages.  The  above  named  indebtedness 
includes  Government,  States,  county,  municipal,  corporation  and 
individual  debts. 

Besides  the  above  interest  loss,  two  million  laborers  have  been 
idle  during  the  past  ten  years  and  three  times  that  number  have 
had  their  salaries  scaled  down  15$  during  the  time  and  $15,000,- 
000,000  is  said  to  have  been  lost  by  depreciation  of  values  be- 
cause the  money  question  was  not  settled  ten  years  ago,  as  had 
it  then  been  settled  no  money  panic  could  have  taken  place. 

The  short  supply  of  money  in  the  channels  of  trade  and  pro- 
duction the  past  ten  years,  while  causing  the  losses  above  men- 
tioned, forced  128,000  mercantile  establishments  into  bankrupt 
courts,  scores  of  million  of  money  lost  to  depositors  by  the 
numerous  bank  failures,  hundreds  of  manufacturing  plants  shut 


2IO 

down,  and  debtors  having  bound  themselves  to  pay  the  $700,000,- 
ooo  interest  above  referred  to  when  money  was  more  plenty  and 
being  unable  to  pay  it  when  money  was  not  to  be  had,  caused  the 
sacrifice  of  the  mortgaged  property,  which  means  to  the  debtors 
the  loss  of  their  farms,  their  homes,  their  living,  their  all,  it  means 
empty  stomachs,  scant  clothing,  no  shelter  or  food  for  self,  wife 
or  little  ones,  but  headache,  heartache,  hopeless  despair  and  fre- 
quent suicide. 

This  kind  of  loss  and  suffering  has  been  brought  upon  the 
country  every  few  years  since  its  first  formation  by  the  manipula- 
tion of  private  money,  which  could  not  have  happened  had  the 
money  question  been  justly  settled  in  those  early  days. 

A  system  of  money  that  causes  or  does  not  prevent  money 
panics  with  its  losses  and  misery  referred  to  above,  never  can  be 
relied  on  to  settle  the  money  question.  It  is  evident  the  question 
can  never  be  settled  by  discussing  and  disputing  about  the  kind 
of  material  upon  which  money  may  be  stamped,  as  that  has  been 
going  on  for  scores  of  years,  with  no  prospect  of  a  settlement, 
and  the  outcry  and  necessity  for  its  settlement  increases  in  volume 
as  time  rolls  on.  The  material  upon  which  money  may  be  stamp- 
ed, has  no  principle  of  money  in  it  until  it  is  stamped,  money  is 
sovereign  power,  not  gold,  silver  or  paper,  they  are  only  the 
material  upon  which  money  may  be  stamped  and  exercise  its 
money  function. 

Well  may  it  be  claimed  that  settling  the  money  question  is  the 
biggest  question  to  be  settled.  As  the  present  Government  and 
.States  debts  and  a  war  debt  of  a  few  billion  dollars  added,  and 
four  billion  added  to  that  for  buying  and  building  all  long  im- 
portant railroads  and  the  Nicaragua  Canal.  All  of  these  vast 
sums  could  have  been  twice  paid  from  the  losses  our  Government 
and  people  have  sustained  the  past  ten  years  through  our  present 
deficient,  iron  clad  private  money  system.  The  loss  occurred, 
the  money  value  disappeared,  yet  the  debts  are  not  paid  nor  the 
much  desired  improvements  acquired.  Yet  it  is  a  happy  thought 
to  know  that  the  adoption  of  the  public  money  system  outlined  in 
these  pages,  no  such  affliction  could  again  occur.  As  after  the 
money  question  is  thus  settled,  money  panics  would  be  impos- 
sible.' 

Many  attempts  and  many  promises  have  been  made  by  ambi- 
tious partisan  politicians  to  settle  the  money  question,  by  making 


211 

some  changes  in  the  material  of  private  money,  by  adding  or 
eliminating  and  thus  improve  by  attempts  at  purifying  and  purg- 
ing it  was  hoped  the  money  question  could  be  settled  and  still 
retain  our  present  private  money  system — vain  hope.  The 
measmetic  pool  of  private  money  never  was  more  corrupt  than  at 
the  present  time. 

After  this  long  time  trying  to  settle  the  money  question  and 
no  improvement  having  resulted,  and  no  improvement  from  that 
direction  yet  in  sight,  we  may  despair  of  ever  settling  the  money 
question  through  any  system  of  prirctte  money.  So  we  must  turn 
to  public  nwnc\  for  relief.  The  enactment  by  Congress  of  the 
within  bill  would  settle  the  money  question  by  giving  us  public 
money,  plenty  of  it,  all  a  full  tender,  and  always  obtainable  at  a 
3^  per  annum  interest,  giving  us  a  gold  standard  without  the 
consent  or  assistance  of  other  nations. 

The  public  money  system  outlined  below  if  inaugurated  would 
settle  the  question  justly  and  permanently  beyond  question. 

1'ublic  money  we  define  as  being  money  created,  owned  and  loan- 
ed by  (lie  people  through  their  agent  the  banking  department, 
to  their  Government,  to  the  States,  to  manufacturers,  to  miners, 
to  farmers,  to  bankers  and  other  corporations  and  to  individuals 
upon  securities  named  by  Congress,  such  as  Government  and 
State  bonds  and  bullion  at  90^  of  their  market  value  in  United 
States  gold  coin,  and  upon  real  estate  at  50^  of  its  taxable  value, 
and  at  a  rate  of  interest  not  to  exceed  3^  per  annum.  Such 
would  be  public  money  and  all  redeemable  by  the  borrower  or  b\  his 
property  the  same  as  the  note  of  the  National  Banks  is  now  re- 
deemed, without  burdening  the  Government. 

Under  this  public  money  system  our  whole  people  would  be 
the  money  power  and  the  only  stockholders — so  to  speak — of 
this  the  richest,  most  powerful  and  the  most  important  banking 
system  known.  Such  a  system  would  be  practical,  just,  efficient, 
constitutional  and  complete,  it  being  of  the  people,  by  the  people, 
for  the  people,  owning  the  bank,  making  and  loaning  the  money 
and  enjoying  its  net  income  and  other  advantages  are  all  of  and 
for  the  people,  the  legitimate  sovereigns  of  the  United  States. 

Think  what  a  happy  change  this  would  be,  heretofore  banks 
were  and  are  owned  by  the  rich  only,  but  this  public  money  bank 
—the  richest  and  most  important  of  all  banks,  is  to  be  owned  by 
the  poor  as  well  as  the  rich. 


212 

If  enough  legal  tender  money  consisting  of  gold  and  silver 
coin  and  paper — the  Government  bank  note — and  its  value  fixed 
by  law  to  a  gold  coin  standard,  and  always  obtainable  upon  de- 
mand at  an  interest  of  3$  per  annum  and  based  upon  gold  and 
silver,  bullion,  Government  and  State  bonds  and  real  estate,  will  not 
settle  the  money  question,  what  more  is  required  ?  Allow  me  to 
ask,  could  a  money  panic  be  forced  upon  a  country  when  enough 
of  the  best  of  money  can  be  obtained  always,  and  at  an  interest  of 
3^?  Impossible. 

The  enactment  of  the  within  bill  as  above  stated,  would  settle 
the  money  question  by  inaugurating  public  money  which  will  free 
the  people  from  the  financial  tyranny  under  which  they  have 
labored  and  suffered  these  many  years.  The  people  of  these 
States  requires  freedom  from  financial  slavery  as  much  as  the 
Cubans  and  Philippines  do  from  their  political,  mental  and  physi- 
cal Spanish  tyranny,  which  if  taken  in  time  can  be  honorably 
effected  without  bloodshed. 

Under  this  public  money  system,  the  people  would  no  more 
depend  upon  individuals  and  private  banks  for  money,  than  they 
now  are  depending  upon  individuals  and  express  companies  to 
carry  their  mail  matter. 

The  United  States  seem  destined  by  Providence,  fate  or  some 
other  power  to  work  out  man's  freedom  either  by  the  sword  or  by 
peaceful  examples.  It  first  freed  itself  from  British  rule  by  the 
sword,  English  political  domination,  its  taxation,  its  church 
bigotry  and  its  mental  bond  were  all  wiped  off  the  country.  South 
and  Central  America,  Mexico,  France  and  other  countries  tried  to 
free  themselves  by  the  same  means,  following  the  example  set, 
and  partially  succeeded. 

Political  freedom  worked  so  well  in  building  up  the  country  and 
its  people  in  the  United  States,  Great  Britain  learned  and  pro- 
fitted  by  the  lesson  and  wisely  granted  comparative  freedom  to 
most,  if  not  all,  of  its  other  colonies  and  thereby  maintained 
peace  with  them  without  the  shedding  of  blood,  and  it  inaugurat- 
ed many  important  reforms  at  home,  much  of  Europe,  Russia, 
Japan  and  other  States  have  made  radical  reforms  for  the  free- 
dom of  their  people.  Thus  is  freedom  spreading  over  the  world 
since  America  freed  itself. 

The  second  bloody  struggle  the  United  States  undertook  for 
the  freedom  of  man  was  the  emancipation  of  the  Southern 


213 

negro.  They  were  freed,  but  at  a  great  cost  of  blood  and  treasure. 
Now  destiny  has  forced  it  to  draw  its  sword  for  freeing  the 
Cubans  and  the  Philippines  from  their  cruel  Spanish  yoke.  This 
will  also  be  done. 

When  the  colonists  threw  off  the  burdens  above  named  that  had 
been  imposed  upon  them  by  Britain,  they  retained  the  English 
private  monc\  system  under  which  their  Government  and  its  people 
have  suffered  untold  losses  and  misery  at  various  times  the  past 
hundred  years.  The  past  ten  years  alone,  as  above  stated,  the 
financial  loss  from  depreciation  of  property  values,  idleness,  etc., 
is  said  to  be  $15,000,000,000,  equalling  perhaps  in  value  the  isl- 
ands and  all  the  properties  of  Cuba  and  the  Philippines,  and  the 
starvation,  sickness,  headache,  heartache  and  suicide,  caused  by 
it,  was  greater  than  existed  in  all  those  islands  during  the  ten 
years.  As  while  the  islanders  suffered  by  the  hundred  thousand 
the  people  of  the  United  States  suffered  by  the  million,  full  sixty 
million  of  the  seventy-five  million  of  Americans  suffered  more  or 
less,  and  some  of  them  man  for  man  suffered  quite  as  much  as 
the  people  of  those  islands. 

The  people  of  those  islands  suffered  starvation  and  death 
through  the  cruelty  of  a  foreign  foe.  The  people  of  the  United 
States  suffered  by  the  inefficient,  private  Shylock  money  system. 

The  thousands  that  have  been  driven  from  their  homes  in  those 
islands  most  of  them  will  be  permitted  to  return  to  them  when 
their  persecution  ends,  but  the  hundreds  of  thousands  driven  from 
their  homes  as  above  in  the  United  States  not  so  much  as  one 
will  ever  be  permitted  to  return  again  to  their  homes.  One  is 
driven  from  their  homes  by  the  Shylock  money  tyrant,  and  the 
other  by  their  cruel  Spanish  tyrant.  Let  me  ask,  which  is  the 
most  cruel? 

The  Cubans'  afflictions,  the  destruction  of  the  Maine  and  other 
losses  have  aroused  the  people  of  the  United  States  to  blood- 
shed, to  free  themselves  from  further  loss  and  insults  and  the 
Cubans  and  Philippines  from  their  foreign  tyrants. 

Rut  their  home  tyrant,  their  invisible  enemy  that  does  them  so 
much  harm,  they  feel  his  power,  but  being  invisible  they  seeming- 
ly pay  no  attention  to  him.  Although  he  is  more  powerful  than 
Spain  to  harm  them,  has  taken  from  them  more  wealth  and 
happiness  the  past  ten  years,  than  Spain  can  possibly  do  the  next 
ten,  however,  vigorously  it  wages  war  against  them. 


214 

It  will  cost  both  blood  and  treasure  to  free  the  Cubans  and 
Philippines,  but  the  more  important  freedom  of  delivering  the 
people  of  the  United  States  from  their  private  money  autocrat 
could  be  effected  by  simply  changing  our  present  private  money 
system  to  the  public  money  system  advocated  in  these  pages,  which 
would  surely  settle  the  money  question  justly  and  permanently, 
and  set  a  worthy  example  to  all  people  as  to  how  they  can  peace- 
fully free  themselves  from  this  money  autocrat  who  now  enslaves 
them. 

If  it  be  the  duty  of  the  United  States  to  work  out  freedom  for 
man  it  is  as  much  its  duty  to  free  them  from  the  private  money 
autocrat  as  from  political  tyranny  or  physical  slavery,  and  under 
the  public  money  system  herein  advocated  the  private  money 
autocrat  can  be  downed  without  the  shedding  of  blood.  It  may 
yet  be  ascertained  that  settling  the  money  question  as  above  sug- 
gested would  impart  more  comforts  and  happiness  to  man  than  by 
downing  all  political  tyranny  and  physical  slavery  yet  remaining. 
The  money  question  being  first  settled  by  the  people  of  the 
United  States  must  of  necessity  spread  rapidly  among  surround- 
ing nations  imparting  freedom  and  happiness  to  hundreds  of  mil- 
lions of  people. 

It  is  not  in  the  power  of  man  to  forsee  the  enormous  increase 
in  industrial  production,  improvements  and  wealth  in  these  States 
after  the  money  question  is  settled  by  the  inauguration  of  public 
money  as  above.  As  then  all  shipbuilding,  all  railroad  building, 
all  public  improvements,  all  private  improvements  in  town  and 
country,  all  productions  of  factories,  mines  and  farms,  all  mer- 
chandising, all  employment,  in  a  word  all  business  transacted  in 
all  the  country  from  the  Atlantic  to  the  Pacific,  from  Mexico  to 
Canada,  would  thereafter  be  done  with  money  always  obtainable 
at  an  interest  of  3$  per  annum  or  less. 

As  then  if  the  Government  wanted  money  it  could  borrow  at 
the  people's  bank,  if  the  States  wanted  money  they  could  borrow 
at  the  same  bank,  if  corporations  or  individuals  wanted  money 
they  could  borrow  at  the  same  place  or  of  other  banks  and  money 
lenders  as  the  money  could  be  there  obtained  at  about  the  same 
rate  per  cent,  as  usury  and  extravagant  interest  is  dead,  being  put 
out  of  the  way  by  public  money.  Score  one  point  for  public 
money.  Public  money  being  created,  owned  and  loaned  by  the 
people  all  interest  derived  from  it  when  first  put  in  circulation, 


215 

justly  belongs  to  the  people,  not  to  autocratic  Shylock  as  would 
be  the  case  if  it  was  private  money.  Here  we  score  another 
victory  for  public  money. 

The  difference  in  the  business  transactions  of  a  great  country 
like  the  United  States  between  a  partial  supply  of  money  at  7$ 
interest,  and  an  abundant  supply  at  3^,  its  effect  would  be  enjoy- 
able just  to  contemplate  and  say  nothing  about  the  saving  of 
$700,000,000  interest  annually  on  the  numerous  debts  referred  to 
above.  Would  not  the  great  prosperity  attending  the  inaugura- 
tion of  public  money  in  the  United  States  stimulate  all  people 
to  demand  a  like  financial  freedom?  As  the  debt  autocrat  has 
been  crowned  and  installed  monarch  of  all  the  nations  and  has 
bound  them  in  bonds  of  a  $20,000,000,000  war  debt,  and  exacts 
of  them  a  yearly  tribute  of  $800,000,000,  and  as  much  or  more 
from  their  people.  These  bonds  and  this  tribute  has  been  riveted 
upon  them  by  the  monarch,  by  and  through  the  manipulation  of 
private  money.  So  far  as  known  there  is  nothing  within  the 
power  of  man  that  can  honorably  and  peaceably  deliver  them 
from  this  servitude,  save  it  be  the  inauguration  of  public  money, 
by  it  alone  can  this  universal  monarch  be  dethroned,  his  power 
curtailed  and  the  nations  gradually  delivered  from  debt  and 
tribute. 


CHAPTER  XLVII. 


Public  money  has  been  written  up  quite  liberally  the  past 
twenty  years  and  the  following  is  the  summing  up  of  many  of 
the  advantages  and  blessings  that  would  surely  follow  the  in- 
auguration of  Public  Money. 

This  Public  Money  System  Demands 

That  Congress  shall  adopt  a  complete,  comprehensive  domes- 
tic money  system,  by  organizing  a  Government  Banking  De- 
partment, whose  officers  shall  have  full  control  under  the  laws 
of  Congress,  of  all  coinage  and  issues  of  money,  its  distribution 
and  redemption. 

It  is  Claimed  for  this  System. 

i st.  With  such  a  banking  system,  if  the  people  had  too  little 
money  they  could  take  their  securities  to  the  banks  and  get  more, 
if  too  much,  they  could  return  what  they  did  not  want,  then 
business  would  never  suffer  for  want  of  money  nor  the  country 
cursed  with  a  surplus  that  could  not  be  used. 

2nd.  No  capital  would  be  required  to  start  this  banking  de- 
partment save  only  for  buildings  and  preparations. 

3rd.  This  department  would  supply  money  to  the  industries 
as  freely  and  at  the  same  rate  of  interest  in  times  of  panic  (if 
panics  were  possible  under  this  system),  as  when  money  was 
plenty  among  the  people. 

4th.  United  States  gold  coin  being  the  standard  of  value  for 
this  department  money,  and  its  basis  being  Government  and  State 
bond,  bullion  and  real  estate,  our  currency  would  be  of  the 
highest  standard  known  and  rest  upon  a  broad  solid  basis. 

5th.  This  department  would  loan  a  poor  man  a  small  sum 
at  the  same  rate  of  interest,  it  would  loan  a  rich  man  a  large 
sum. 


6th.  Interest  being  always  the  same  at  this  department,  its 
money  would  be  of  uniform  value,  hence  a  just  measure  at  all 
times.  Investments  could  be  made  and  enterprises  inaugurated, 
with  a  surety  that  money  would  be  obtainable  and  interest  for 
its  use  unchanged  during  its  prosecution. 

7th.  Interest  for  the  use  of  this  department  money  being: 
3$  would  immediately  curtail  the  power  of  shylock  by  reducing 
interest  to  about  that  figure  in  all  parts  of  the  country,  rendering 
usury  laws  useless  and  usury  impossible. 

8th.  The  currency  of  this  department  being  all  secured  by 
specific  property  as  well  as  Government  credit  up  to  its  full  face 
value,  which  the  Government  by  law  and  stamp  say  it  is  worth, 
and  just  what  the  Government  must  receive  it  for,  for  all  dues, 
taxes,  revenues  and  deposits  and  of  course  before  any  part  could 
depreciate  it  would  be  returned  to  the  Government  at  its  face 
value. 

9th.  The  value  of  this  public  money  being  fixed  by  law  to 
a  United  States  gold  coin  standard  and  the  borrower  or  his 
property  —  not  the  Government  —  redeems  all  the  same  as  the 
National  Bank  note  is  now  redeemed. 

Then  no  bank  reserves  or  National  Treasury  hoardings  at  great 
expense  for  redemption  purposes  would  be  required. 

loth.  Money  circulated  by  this  department  in  pursuance  of 
law  could  be  exchanged  for  gold  coin,  in  any  bank  or  broker 
office  in  this  nation,  upon  the  same  terms  that  gold  coin  could  be 
exchanged  for  silver  coin  or  paper  money.  Thus  making  all  our 
money  practically  interchangeable  upon  the  same  conditions. 

nth.  This  department  would  supply  Public  Money  always 
equal  to,  but  never  in  excess  of  our  actual  requirements,  made  of 
gold,  silver  and  paper,  all  of  one  standard  value  and  uniform 
purchasing  power. 

1  2th.  The  Government,  States,  railroads,  etc.,  having  securi- 
ties that  would  draw  gold  from  Europe,  could  always  be  supplied 
with  money  by  this  department  at  a  comparative  low  rate  of 
interest.  Thus  would  be  stopped  that  flow  of  gold  that  now  goes 
to  pay  interest  and  brokerage  on  foreign  loans. 

I3th.  This  department  loaning  for  3^  and  receiving  on  deposit 
for  2^,  could  always  loan  and  receive  on  deposit  without  loss. 

1  4th.  The  net  income  of  this  department  would  pay  our  na- 
tion's debt  without  assistance  of  revenues  from  other  sources. 


II 


218 

1 5th.  This  department  could  lend  the  States  money  enough  to 
pay  their  present  debts  as  they  become  due  at  one-half  the  in- 
terest they  now  pay. 

1 6th.  This  department  would  yield  the  Government  a  net 
revenue  variously  estimated  from  $40,000,000  to  $200,000,000 
annually,  and  it  would  save  the  business  community  a  much 
larger  sum,  by  relieving  them  of  one-half  the  interest  they  now 
pay  for  the  use  of  money,  say  approximately  $800,000,000  yearly. 

I7th.  No  foreign  banks  or  corners,  by  combination  of  capital, 
could  ever  effect  the  solvency  of  this  banking  department.  It 
would  have  one  sphere  in  which  it  must  act  and  that  would  be 
independent  of  all  the  world  outside  of  the  Government  that 
created  it. 

1 8th.  No  money  panic  could  ever  afflict  the  country  with 
money  supplied  to  the  industries  by  this  department. 

I9th.  This  banking  department  would  change  the  Govern- 
ment from  being  one  of  the  largest  borrowers,  to  that  of  the 
largest  money  lender  in  the  world.  It  would  be  the  financial 
backbone  of  the  Government,  and  the  most  important  money 
power  on  earth. 

2oth.  The  money  circulated  by  this  department  would  be 
self  redeeming,  revenue  producing,  and  representative  money, 
national  in  its  true  sense ;  and  would  circulate  readily  in  all  parts 
of  the  country.  The  "gold  rings"  nor  the  specific  contract  act 
of  California  could  not  prevent  its  circulation  even  there. 

2ist.  The  establishing  of  this  banking  system  and  its  distribu- 
tion of  public  money  would  mark  a  new  era  in  Government  finance 
and  currency  and  make  the  change  in  the  money  system  of  this 
country  so  much  required.  The  past  and  present  money  sys- 
tems of  this  country  being  wrong  in  principle,  has  and  always 
must  produce  trouble  in  practice,  and  no  patching  or  propping 
by  Legislative  enactment  can  ever  remedy  their  defects. 

22nd.  With  the  supply  of  money  ample,  and  distribution  cer- 
tain, interest  low  and  uniform,  many  enterprises  and  improve- 
ments— railroads,  factories,  mines,  farms,  ships,  etc.,  could  be 
built,  opened,  operated  and  improved,  which  cannot  be  done 
tinder  our  present  money  system  with  its  uncertain  supply  and 
its  high  and  varying  rate  of  interest.  But  under  the  invigorating 
effect  of  this  department  money,  the  mill  and  shop,  the  forge 
and  farm  would  constantly  echo  the  music  of  industry,  giving 
remunerative  labor  to  millions  of  honest,  idle  hands  to  do. 


219 

23rd.  A  "run"  upon  these  banks  would  make  money  plenty 
and  the  banks  rich.  The  more  money  legally  drawn  from  them 
the  richer  they  would  become. 

24th.  By  establishing  this  department  Congress  will  have  per- 
formed its  whole  constitutional  money  duty.  As  this  department 
would  supply  amply  all  the  money  requirements  of  this  great 
nation  for  all  time,  never  too  much  or  too  little,  and  at  an  equita- 
ble rate  of  interest. 

25th.  As  demand  for  use  is  the  natural  Ur:^'  of  volumes.  The 
loaning  of  this  money  would  be  upon  demand  only,  which  must 
settle  justly  the  amount  of  money  required  for  the  nation's  use. 

26th.  This  department  would  greatly  simplify  the  business 
of  the  National  Treasury  department,  and  remove  much  of  the 
labor  and  anxiety  of  the  treasurer,  by  relieving  him  of  bond 
negotiation,  currency  redemption  and  other  labors  for  supplying 
the  Treasury  and  maintaining  the  credit  of  the  Government  and 
his  quarterly  settlement  with  the  so-called  National  Banks  would 
entirely  cease,  and  only  the  quarterly  settlement  with  the  parent 
bank  of  this  department  substituted. 

27th.  This  department  could  lend  the  Government  all  the 
money  that  Congress  would  give  it  authority  to  borrow  and  thus 
obviate  the  necessity  of  the  Government  going  abroad  to  borrow, 
and  of  any  further  foreign  absorption  of  Government  bonds. 

28th.  If  this  department  was  organized  according  to  the  pro- 
posed plan,  it  would  possess  the  principle  of  self  perfection.  Thus 
differing  from  all  private  banking  systems,  all  of  which  contain 
the  seeds  of  their  own  dissolution. 

29th.  This  department  could  supply  the  maximum  and  mini- 
mum money  requirements  of  this  great  nation  without  loss  or 
embarrassment  to  itself  or  to  the  community. 

3Oth.  This  department  would  make  the  finances  of  the  coun- 
try so  healthy,  there  would  be  money  enough  for  all  to  borrow, 
and  borrowers  enough  for  all  to  lend.  No  individual,  bank,  or 
corporation  would  be  compelled  to  hold  over  large  sums  of 
money  for  which  they  had  no  use,  all  could  find  customers.  No 
stagnation  possible  in  the  circulation  of  this  money. 

3 1 st.  If  this  department  was  established  according  to  the 
proposed  plan,  its  money  would  be  good  for  all  time.  Thus 
saving  the  expense  to  the  country  of  the  yearly  discussion  of  the 


220 

money  question  by  Congress  and  remove  the  great  solicitude 
felt  by  the  business  community  at  such  time,  lest  some  change 
should  be  made  in  the  currency  whereby  their  business  would 
be  unfavorably  effected. 

32nd.  The  officers  of  this  department  could  report  daily  just 
how  much  money  is  required  daily  to  do  the  business  of  the 
whole  country  and  comparatively  with  as  much  certainty  as  a 
barometer  tells  the  state  of  the  atmosphere,  or  the  thermometer 
its  heat. 

33rd.  The  organization  of  this  department  would  settle  justly 
the  perplexing  question  as  to  whether  the  people  preferred  paper, 
silver  or  gold  for  their  money,  or  a  portion  of  each,  and  if  the 
latter,  how  much  of  each,  what  they  reject  they  will  carry  back 
to  the  Government. 

34th.  This  department  would  spread  public  money  over  the 
country,  so  justly  and  so  effectually,  that  the  extremes  of  our 
country  would  be  supplied  with  money  at  the  same  rate  of  in- 
terest as  the  great  business  centers  and  with  the  same  certainty 
of  supply. 

35th.  The  improvements  that  could  be  made  with  the  net  in- 
come of  this  department  would  add  wealth  to  the  nation  beyond 
computing. 

We  will  add  by  way  of  explanation  that  it  is  proposed  in  order 
to  avoid  high  freights  and  fares,  railroad  monopoly,  railroad 
strikes  and  riots  in  future,  that  all  railroads  and  telegraphs  that 
are  of  sufficient  length  to  be  of  national  importance,  should  be 
bought  or  built  with  the  interest  fund  of  this  department  and 
owned  and  operated  by  Government  for  the  general  good. 

36th.  This  department  money  would  increase  and  decrease  in 
quantity  to  conform  to  industrial  demand,  never  a  surplus  nor 
a  deficiency. 

37th.  This  public  money  whether  made  of  gold,  silver  or 
paper  being  distributed  to  the  extent  of  the  nation's  need,  would 
add  more  wealth  producing  power  to  the  nation  than  so  many  dol- 
lars of  private  gold. 

38th.  All  other  departments  of  our  Government  are  expen- 
sive and  mostly  maintained  from  the  Public  Treasury.  This  de- 
partment would  not  only  pay  its  own  way,  but  produce  millions 
annually  for  Government  use. 

39th.     Another  great  blessing  would  flow  from  the  wise  work- 


221 

ings  of  this  department,  viz:  States,  counties,  cities,  corpora- 
tions, debtors  of  all  kinds,  that  are  now  only  able  to  pay  the 
interest  on  their  indebtedness,  could  then  borrow  money  for 
much  less  interest  than  they  now  pay,  and  the  difference  could 
be  set  apart  as  a  sinking  fund  to  pay  their  debts.  Thus  in  course 
of  time,  all  could  release  themselves  of  debt  and  all  their  creditors 
be  honestly  paid. 

4Oth.  If  this  department  was  organized  according  to  this 
theory  no  party  in  power  could  possibly  use  its  influence  to  per- 
petuate their  official  life. 

4 1  st.  This  department  would  cause  an  accumulation  of  gold 
in  this  country,  by  removing  many  of  the  causes  for  which  gold 
is  now  sent  abroad. 

42nd.  If  the  Government  was  the  only  issuer  of  notes,  all  loss 
from  fires,  shipwrecks  and  other  causes,  would  insure  to  the 
benefit  of  our  whole  people,  to  whom  the  profit  belongs. 

43rd.  If  this  department  was  in  operation,  no  limited,  inflated, 
irredeemable,  illegal  tender  currency,  that  is  constantly  fluctuat- 
ing in  value,  and  so  rigged,  that  it  will  neither  increase  nor 
diminish  to  conform  to  the  demands  of  business,  would  ever  again 
curse  this  country. 

44th.  With  this  department,  no  more  "strengthening  acts," 
or  "demonetizing  acts,"  for  the  benefit  of  bondholders  and  other 
creditors,  or  "resumption  acts,"  to  rob  labor  and  fill  the  land 
with  want  and  misery  would  be  necessary. 

45th.  This  banking  department  would  be  the  people's  bank 
and  national  in  its  true  sense.  It  would  benefit  the  monied  man 
by  enabling  him  to  loan  safely  all  his  money,  it  would  be  the 
poor  man's  savings  bank  where  he  could  deposit  his  small  sav- 
ings and  have  it  increase  without  fear  of  loss.  It  would  enable 
him  to  borrow  a  small  sum  of  money  at  the  same  rate  of  interest 
as  a  rich  man  could  borrow  a  large  sum,  thus  extending  equal 
money  rights  to  every  citizen. 

46th.  If  this  department  was  in  working  order,  then,  no 
more  foreign  national  debt,  or  high  and  varying  rate  of  interest 
for  the  use  of  money  would  again  afflict  this  country. 

47th.  With  this  banking  system  in  operation  the  interest  for 
the  use  of  money  and  the  net  income  of  the  industries  would  and 
should,  approximate  the  same. 

48th.     This  department  would  place  the  people  first,  financial- 


222 

ly,  the  Government  second  and  the  money  monopolist  as  their 
auxiliaries.  Now  the  money  power  is  first,  and  the  Government 
and  the  people  are  its  auxiliaries. 

49th.  The  people  under  the  workings  of  this  department 
would  be  the  money  power  which  must  check  the  growing  an- 
tagonism now  existing  against  the  present  money  power,  thus 
ending  all  fears  of  the  horrors  of  a  French  revolution  being 
forced  upon  the  country  by  the  existing  growing  antagonism. 
The  rights  of  the  people  would  be  respected  and  labor  receive  its 
just  dues. 

5Oth.  This  department  would  take  out  of  circulation  all  objec- 
tionable currency  leaving  only  the  unobjectionable  to  circulate 
among  the  people.  Thus  reversing  that  old  currency  law,  which 
our  present  money  system  forces  upon  the  people,  viz:  "Inferior 
currency  always  drives  out  the  better." 

5 1 st.  In  justice  to  the  industrial  arm  of  this  nation  this  bank- 
ing department  is  demanded,  that  every  citizen  may  enjoy  equal 
legal  money  privileges.  Now,  bankers  only  are  permitted  to 
borrow  money  from  the  Government,  and  after  loaning  a  few 
hundred  million  of  cash  and  credit  to  the  so-called  National 
Banks,  and  railroad  corporations,  no  reason  seems  potent  enough, 
to  justify  Congress  in  refusing  to  lend  also  to  the  laboring  arm 
of  the  nation,  seeing  that  it  produces  all  our  wealth  and  progres- 
sive greatness. 

52nd.  This  banking  system  differs  from  all  other  banking  sys- 
tems in  these  States  in  two  important  particulars  not  above  men- 
tioned, viz:  none  of  these  banks  can  ever  be  broken  and  their  net 
income  would  go  into  circulation  without  security  and  without 
interest.  No  money  can  be  drawn  from  these  banks  not  even 
by  the  Government  only  upon  security  prescribed  by  Congress, 
except  the  net  income  which  is  passed  over  to  the  United  States 
Treasurer  at  every  quarterly  settlement  the  Treasurer  has  with 
the  parent  bank  officers  and  to  be  used  by  him  as  the  law  directs. 

53rd.     Under  this  money  system  Government  could  take  out  of 
circulation  all  greenbacks  and  other  Treasury  notes  without  de- 
creasing the  money  supply,  or  having  to  provide  gold  for  ex-  1 
changing  them  or  for  their  final  redemption. 

54th.  This  department  would  extract  the  teeth  of  the  "gold 
standard"  tiger  which  would  not  only  render  him  harmless  but 
make  him  a  willing  servant,  a  blessing  to  man. 


223 

55th.  Had  this  system  been  working  nine  years  ago,  when  our 
present  money  affliction  first  began  to  be  felt,  the  fourteen  billion 
of  wealth  that  disappeared  during  those  years  on  account  of 
the  money  famine,  would  have  been  saved  as  well  as  the  misery 
the  people  suffered  on  account  of  it,  as  there  could  be  no  money 
panic  under  this  system. 

56th.  Under  this  system  bimetallism  and  the  gold  standard 
could  be  inaugurated  and  maintained,  without  a  permit,  or  assist- 
ance from  Europe,  and  gold,  silver  and  paper  money  kept  on  a 
parity  without  a  gold  redemption. 

57th.  Under  this  system,  Government  could  borrow  from  the 
people  all  the  money  Congress  would  permit  it  to  borrow  with- 
out having  to  employ  expensive  syndicates  to  do  the  negotiating, 
and  the  interest  would  be  paid  to  the  people's  bank. 

Congress  having  delegated  its  own  constitutional  power,  and 
the  people's  sovereign  right,  to  individuals  and  corporations  to 
issue  currency  and  enjoy  the  profits  thereof:  and  they  having 
issued  it  in  times  past  in  a  reckless  manner,  without  system  or 
justifiable  responsibility  and  the  country  having  suffered  so  much 
the  past  hundred  years  with  the  old  time  private  currency  with 
its  deficient  supply,  its  usurious  and  variable  rate  of  interest,  its 
panics,  suspensions  and  resumptions,  it  would  now  seem  wise 
and  statesmenlike  to  try  once  a  money  system  founded  exclu- 
sively upon  constitutional  powers  and  common  honesty  and  no 
longer  take  it  for  granted  that  their  money  duty  has  been  per- 
formed to  the  country  when  it  has  supplied  the  National  Banks 
with  currency  at  i#  per  annum. 

The  constitutional  money  plan  never  having  been  tried,  but 
few  if  any  of  the  numerous  and  truly  great  advantages  numbered 
above  have  ever  been  enjoyed  by  the  people  or  their  Government, 
but  if  it  ever  is  adopted  they  must  surely  enjoy  the  full  measure 
of  the  blessings  above  numbered,  and  no  doubt  scores  of  others 
not  yet  seen  that  practice  would  reveal. 


CHAPTER  XLVIII. 


EVILS  REMOVED   BY  THE  BILL. 

ist.  A  currency  that  is  constantly  fluctuating  in  value,  and  so 
rigid  it  can  neither  be  increased  nor  diminished  to  conform  to 
the  demand  of  production  and  trade  are  evils  of  magnitude  and 
would  be  removed  by  the  enactment  of  this  bill. 

2nd.  Money  that  cannot  be  circulated  or  so  scarce  the  busi- 
ness of  the  country  cannot  be  done  with  it,  are  also  momentous 
evils  to  be  completely  cured  by  the  issue  of  public  money  as 
demanded  by  the  foregoing  bill. 

3rd.  Congress  failing  to  supply  the  people  and  their  Govern- 
ment with  money  adequate  for  all  business  purposes  and  thus 
forcing  the  Government  and  at  times  the  people,  into  foreign 
countries  to  obtain  money  for  domestic  use,  which  it  had  full 
power  to  supply,  fails  of  an  important  and  confided  duty.  Which 
must  be  confessed  not  only  an  evil,  but  a  criminal  shirking  of  a 
commanded  duty. 

4th.  Money  panics,  foreign  national  debt,  usurious  and  vary- 
ing rates  of  interest  for  the  use  of  money,  are  great  evils — bur- 
dens upon  the  American  people,  from  which  public  money  only 
can  deliver  them. 

5th.  Private  banks  of  issue,  of  savings  and  deposit,  that  are 
frequently  broken,  thus  creating  distrust,  loss  and  suffering 
among  the  people.  From  which  evils  the  Government  banking 
department  provided  for  in  the  bill,  would  permanently  relieve 
them,  as  these  banks  are  banks  of  issue,  of  loaning,  of  redemption 
and  deposit  and  not  so  much  as  one  of  them  could  ever  be  broken. 

6th.  Government  loaning  currency  to  National  Bank  owners 
for  i#  per  annum,  and  refusing  to  loan  to  all  other  citizens  at 
any  price,  is  working  for  the  classes  against  the  masses,  and  is  a 
national  evil,  an  outrage  against  the  people,  a  disgrace  to  Ameri- 
can statesmanship,  which  would  all  be  corrected  by  the  enactment 


225 

of  the  foregoing  bill  which  accords  equal  financial  privileges  to 
every  citizen. 

The  National  Banking  department  of  our  Government  as  illus- 
trated in  these  pages  will  cure  all  the  evils  and  confer  all  the 
blessings  numbered  above. 

The  people  of  the  United  States  in  their  Government  co- 
operation are  one  people,  and  have  an  absolute  sovereign  control 
over  the  money  supply,  and  are  entitled  to  share  the  profits 
thereof. 

We  believe  the  critical  reader  will  decide  the  above  points  well 
taken,  both  the  blessings  and  the  evils,  and  sustained  both  by 
the  theory  and  the  arguments.  We  further  believe  Congress 
will  find  more  reasons  to  justify  it  in  establishing  this  banking 
department,  than  was  ever  produced  to  justify  the  establishing 
of  any  other  department  of  our  Government  not  positively  so 
directed  in  the  Constitution.  Every  blessing  conferred  as  above 
numbered,  and  every  evil  prevented  as  above  stated  are  so  many 
arguments  in  favor  of  its  establishment. 

We  believe  more  arguments  have  been  produced  in  urging  the 
enactment  of  this  bill  than  was  ever  produced  in  support  of  any 
bill  ever  yet  introduced  into  the  Congress  of  the  United  States. 
We  honestly  believe  more  arguments  are  already  produced  in 
favor  of  this  public  money  system  than  ever  was,  or  ever  can  be 
produced  in  favor  of  any  and  all  private  money  systems  known. 

If  some  of  the  able  defenders  of  our  present  money  system 
would  sum  up  its  advantages  as  we  have  summed  up  the  ad- 
vantages of  this  public  money  system,  a  contrast  thus  made  would 
be  serviceable  for  reference. 

The  reader  will  observe  that  many  of  the  points  claimed  are 
as  easily  demonstrated  as  a  simple  problem  of  arithmetic,  and 
all  must  admit  if  those  things  can  be  done  by  law,  they  should 
be;  and  the  pall  now  thrown  over  the  palsied  business  of  our 
country  lifted  and  life  thereby  infused  into  it. 

The  people  of  the  United  States  have  suffered  the  incon- 
venience and  loss  from  our  present  and  past  private  money  sys- 
tem, with  its  local  specie  payments,  and  its  suspension  of  specie 
payments,  its  blessings  and  its  panics  a  full  century,  and  all 
must  admit  that  system  a  failure — if  a  system  it  can  be  called — 
and  any  return  to  it,  or  the  continuance  of  it  would  be  unwise, 


226 

now  that  a  public  money  system  has  been  produced  so  perfect 
that  no  argument  can  hold  against  it. 

By  asking  for  this  currency  we  are  not  asking  for  treasures  of 
gold  and  silver,  houses  and  land,  these  we  will  produce  by  our 
labor  and  skill.  We  wish  this  currency  only  for  convenience 
in  measuring  and  exchanging  our  products  when  produced, 
and  its  direct  profits  to  pay  our  National  and  State  debts  and 
make  and  buy  internal  improvements,  railroads,  telegraphs,  etc. 

The  world  having  suffered  so  much  in  times  past  with  the 
old  time  currency,  with  its  deficient  supply,  its  imperfect  circu- 
lation, its  usurious  and  varying  rate  of  interest,  its  suspensions, 
panics  and  resumptions,  it  would  now  seem  wise  statesmanship 
to  try  once  a  money  system  founded  upon  constitutional  powers 
and  the  natural  law  of  common  honesty,  and  we  believe  the 
above  bill  contains  every  ingredient  for  the  purpose  and  at  the 
same  time  has  not  so  much  as  one  objectionable  feature. 

We  believe  the  system  contains  every  principle  worth  preserv- 
ing that  can  be  found  among  all  the  private  money  systems 
known  with  none  of  their  defects.  If  one  doubts  this  let  him 
chose  his  favorite  system,  and  jot  down  every  advantage  he  may 
see  in  it,  and  then  compare  them  with  this  system  and  if  he  don't 
find  them  all  here  numbered  and  scores  besides,  what  remains 
will  be  comparatively  insignificant. 


CHAPTER  XLIX. 


GOVERNMENT   OWNERSHIP   OF    RAILROADS   AND 
TELEGRAPHS. 

* 

We  are  told  "there  are  54  governments  that  own  their  rail- 
ways. 98  that  own  their  telegraphs  and  25  own  their  savings 
banks  *  *  *  In  Sweden,  New  Zealand  and  Germany  the 
telephone  is  public  property  and  rents  as  low  as  $10  a  year." 

In  Australia  the  Government  owns  the  railroads.  It  only  costs 
a  person  $6.50  to  ride  1,000  miles  there,  commutation  rates  for 
local  service  are  still  lower. 

A  workman  can  ride  to  and  from  his  work,  a  distance  of  six 
miles,  for  two  cents  a  trip;  12  miles  for  4  cents;  18  miles  for  6 
cuits;  24  miles  for  8  cents;  30  miles  for  10  cents.  Yearly  tickets, 
good  for  30-mile  trips,  are  sold  for  $17.40.  And  yet  low  as  these 
rates  seem  to  be,  we  are  fully  assured  that  there  is  a  fair  profit 
in  tin-  business. 

I  will  not  multiply  references  to  prove  the  blessings  enjoyed 
by  people  living  in  countries  where  its  Government  own  and 
operates  the  railroads  and  telegraphs,  but  will  proceed  at  once 
to  the  more  important  question  to  us,  as  to  the  advantages 
accruing  to  us  if  our  Government  owned  and  operated  the  rail- 
roads and  telegraphs. 

The  growing  antagonism  between  the  people  and  the  railroad 
corporations,  coupled  with  the  strikes  and  riots  of  railroad  em- 
ployes are  portentious  evils  fearful  to  contemplate  and  of  such 
magnitude  they  are  difficult  to  grasp.  A  foretaste  of  these  evils 
were  felt  a  few  years  ago  by  Pennsylvania,  Illinois,  California 
and  elsewhere.  None  of  which  would  have  occurred  had  the 
roads  belonged  to  the  people  instead  of  private  corporations. 

Fancy  if  you  please  what  may  happen  in  the  near  future  if 
present  methods  are  continued,  with  the  evils  or  fancied  evils 
complained  of  multiplying  until  they  become  unbearable,  then  a 
combination  is  formed  for  resistance  and  destruction,  extending 


228 

over  the  whole  country  and  as  direful  in  its  effect  comparatively 
as  it  was  at  Pittsburg,  Chicago,  California  and  other  places  a  few 
years  ago.  Not  a  wheel  would  be  allowed  to  turn.  Road  beds 
would  be  destroyed,  bridges  burned,  tunnels  blown  up,  destruc- 
tion and  blood  on  every  hand.  Imagine  if  you  can,  the  result 
to  the  great  cities  if  no  food  and  other  necessary  supplies  were 
allowed  to  reach  them  by  rail  for  weeks  and  perhaps  months. 
Fancy  also  the  result  to  the  country  districts  where  many  kinds 
of  food  products  must  spoil  if  not  transported  promptly  to  con- 
sumers. These  destructive  agencies  are  not  enemies  to  railroads 
as  such,  but  they  are  down  on  the  corporations  whom  they  look 
upon  as  enemies  and  know  no  way  to  reach  and  punish  only  by 
destroying  their  property.  None  of  this  prospective  evil  will  ever 
afflict  this  country  if  the  people  hasten  and  possess  themselves 
of  all  the  long  and  important  railroads.  Objectors  assert  "The 
Constitution  gives  Congress  no  power  to  build  internal  improve- 
ments or  to  organize  a  Transportation  Department."  We  reason, 
if  Congress  in  its  agency  has  the  right  and  does  grant  franchises, 
bonds,  public  lands,  etc.;  to  a  few  individuals  to  build  railroads, 
it  certainly  has  the  right  to  permit  these  privileges  to  be  exer- 
cised by  the  whole  people  to  buy  or  build  and  operate  for  their 
own  use  and  profit,  the  system  of  roads  here  outlined. 


CHAPTER  L. 


FREIGHTS  AND  FARES. 

The  freight  and  fare  question  engrosses  much  of  the  attention 
of  law-makers  and  most  thinking  men  in  the  United  States  at 
the  present  time.  And  it  is  of  great  interest  to  all,  and  especially 
to  the  farmers  who  supply  a  large  portion  of  the  freight. 

We  will  endeavor  to  point  out  the  necessity  of  a  radical  change 
being  made  in  the  ownership  and  manner  of  raising  means  to 
construct  all  our  more  important  railroads  before  we  can  expect 
to  realize  any  material  reduction  in  freights  and  fares.  That 
necessity  arises  partially  from  the  following  facts: 

First.  Our  present  roads  are  too  crooked  for  national  highways 
that  are  intended  as  connecting  links  between  the  extreme  points 
of  our  country.  It  is  true  natural  obstacles  have  deflected  them 
in  some  instances,  but  more  frequently  they  are  turned  aside  for 
local  traffic,  or  to  obtain  franchises  from  States,  Counties,  Cities, 
etc.  The  railroad  improvements  of  the  United  States  at  the 
present  time  may  be  likened  to  one  of  our  frontier  settlers  that 
commenced  his  settlement  in  his  young  days  with  only  his  wife, 
and  future  prospects  to  encourage  him;  but  with  strong  muscles, 
a  willing  heart  and  a  determined  purpose,  and  from  necessity  he 
builds  his  first  cabin.  As  time  rolls  on  his  property  accumulates 
and  family  increases  and  from  necessity  an  addition  is  made  to 
his  cabin.  Again  and  again  his  necessities  demand  the  second, 
third  and  perhaps  fourth  addition  to  his  house.  By  the  time 
these  additions  are  all  made  some  of  his  family  may  have  grown 
to  be  young  men  and  young  women,  and  himself  a  man  of  wealth 
and  influence  among  his  neighbors  now  settled  around  him.  Sud- 
denly himself,  wife  and  children  have  discovered  their  house  "un- 
fit to  live  in."  It  is  poorly  ventilated,  inconvenient  and  unshape- 
ly— the  rooms  dark  and  altogether  unsuited  to  their  present 
necessities;  and  no  further  improvement  can  be  made  to  the  ill 
shaped  mass  that  will  give  comfort  to  its  occupants.  And  the 


230 

determination  is  perhaps  reluctantly  taken  to  construct  an  entirely 
new  house  suited  to  their  present  needs  and  social  standing — 
which  they  accordingly  build. 

So  it  is  with  the  United  States  and  her  present  railroad  im- 
provements. Her  people  were  truly  frontier  settlers  in  America, 
and  local  necessity  suggested  the  building  of  the  first  railroad. 
As  the  country  improved  in  population  and  wealth,  local  neces- 
sity added  the  second,  third  and  fourth  roads,  etc.  And  almost 
all  the  roads  yet  built  are  local  in  character,  and  of  necessity 
local  interests  have  drawn  them  hither  and  thither  zigzaging 
across  the  country.  Individually,  or  as  a  whole  our  present  roads 
are  good  for  local  traffic,  but  do  not  approach  to  the  dignity  or 
character  to  justify  their  being  called  national  highways,  and  are 
no  more  creditable  nor  suitable  to  our  nation's  present  wants 
than  the  aged  settler's  first  cabin  with  its  various  additions  was 
adapted  to  his  present  wants.  As  a  nation  then,  ought  we  not 
to  act  wisely  also,  by  constructing  highzvays  suited  to  the  present 
limits,  population,  dignity  and  business  of  the  country,  and  no 
longer  depend  wholly  upon  private  enterprise  for  our  post  and 
military  roads,  that  now  zigzag  through  the  country  to  catch  or 
acommodate  the  local  business  and  the  franchise?  Our  present 
roads  present  upon  the  map  of  our  country  an  appearance  of  a 
spider's  web — having  an  objective  point  but  traveling  in  many 
directions  before  reaching  it;  running  latitude  and  longitude  like 
a  vessel  beating  up  against  a  head  wind,  or  the  turning  of  square 
corners  in  a  city  to  reach  a  point  that  lies  between — traveling 
many  miles  but  making  little  headway.  And  the  most  costly 
and  objectionable  part  of  the  business  is,  the  patrons  of  the  road 
have  to  pay  freight  and  passage  for  every  mile  traveled,  whether 
it  be  towards  or  from  his  destination. 

Second.  They  cost  too  much  to  construct,  and  are  too  ex- 
pensive to  patronize  after  they  are  constructed,  only  to  a  limited 
extent,  as  the  untold  millions  of  tons  of  materials,  (ore,  coals, 
farm  produce,  &c.)  now  lying  within  reach  of  present  roads  fully 
attest;  most  of  which  would  reach  a  market  if  our  present  freight 
rates  were  reduced  to  one-third,  or  even  one-half  present  prices. 
Our  present  roads  are  made  costly  by  being  too  long,  and  built 
mostly  with  the  proceeds  of  bonds  sold  at  large  discount,  yet  the 
full  face  of  the  bonds  is  charged  up  against  the  roads  construction 
account.  They  are  also  constructed  in  a  costly  manner  by 
"Contract  and  Finance  Co.'s,"  "Credit  Mobiliers,"  &c.,  as  well  as 


23 1 

many  unavoidable  obstacles  under  existing  circumstances.  So 
that  roads  costing  only  $30,000  or  $40,000  per  mile  in  honest  ex- 
penditure are  rated  at  twice  as  much,  and  these  latter  figures  are 
the  ones  the  patrons  of  the  roads  have  to  pay  interest  upon  for 
all  time,  and  these  latter  figures  are  the  ones  upon  which  the 
arguments  are  based  and  brought  to  bear  upon  courts  and 
legislative  committees  to  convince  them  that  the  present  prices 
of  freights  and  fares  barely  yield  legal  interest  upon  the  capital 
invested. 

Third.  Our  present  roads  are  built  and  operated  for  the  bene- 
fit of  the  few  and  against  the  interests  of  the  many.  It  happens 
sometimes  that  men  of  small  means  but  with  large  scheming 
energy  build  railroads  successfully,  and  by  the  time  the  roads 
are  ready  for  operation  all  of  the  more  important  officers  of  the 
road  are  rich.  Their  riches  under  those  circumstances  must  be 
and  are  recorded  as  a  part  of  the  cost  of  the  road.  Hence  high 
freights  and  fares  must  be  charged  to  pay  interest  on  capital 
stock  invested  in  the  railroad  and  the  private  fortunes  of  its 
principal  officers.  Roads  constructed  thus  across  a  country  with 
the  proceeds  of  bonds  sold  at  50  or  75  per  cent,  of  their  face 
value,  and  then  operated  upon  a  liberal,  if  not  an  expensive  scale, 
and  tax  the  business  of  the  road,  not  only  to  pay  for  expenses, 
repairs,  &c.,  but  to  pay  7  per  cent,  interest  upon  bonds  sold  at 
50  per  cent,  discount,  and  in  addition  pay  stockholders  a  large 
dividend  on  the  investment;  at  the  same  time  accumulate  a  re- 
serve fund  for  emergencies,  and  a  sinking  fund  to  pay  the  bonds 
when  due,  &c.  When  this  is  understood  we  will  cease  to  wonder 
why  freights  and  fares  are  oppressively  high  upon  all  railroads 
thus  built.  Can  the  productive  enterprise  of  the  United  States 
stand  such  drains  and  still  prosper?  Will  the  wealth  produced 
by  the  labor  of  the  nation  pay  its  way  to  market  over  long  roads 
thus  built  and  operated,  and  still  remunerate  the  producer?  We 
think  not. 

The  above  reasons  justify  me  in  saying  that  a  great  necessity 
exists  for  a  change  in  our  system  of  railroad  building  and  a 
change  of  ownership  of  long  and  important  roads.  And  if  that 
change  would  reduce  freights  and  fares  one-third  or  one-half  from 
present  rates,  it  would  be  another  strong  reason  why  the  change 
should  be  made. 

This  being  the  age  particularly  distinguished  for  co-operation, 
for  large  enterprises,  &c.,  and  inasmuch  as  the  construction  of 


232 

the  railroads  in  the  system  pointed  out  below,  is  the  largest  enter- 
prise of  internal  improvement  ever  undertaken,  therefore,  the 
whole  people  of  these  United  States  shall  form  one  company  to 
buy,  build,  possess,  and  operate  for  the  benefit  of  the  whole  peo- 
ple all  railroads  that  are  of  sufficient  length  to  be  of  national  im- 
portance. In  fact  they  must  construct  a  system  of  national  high- 
ways that  will  be  an  honor  to  our  nation,  a  blessing  to  our  people 
and  adapted  to  the  improvement  of  our  whole  territory. 

We  do  not  claim  perfection  for  these  plans,  only  as  to  owner- 
ship, and  manner  of  creating,  the  means  to  build  them.  But  when 
and  where  they  shall  be  built,  can  be  best  decided  by  the  com- 
bined judgment  of  the  American  people  after  their  focal  eye  of 
intelligent  thought  is  directed  upon  the  subject.  But  for  the 
purpose  of  eliciting  discussion  we  suggest  four  or  more  national 
grand  trunk  roads  of  not  less  than  four  tracks  each,  be  built  and 
operated  by  the  people,  extending  from  the  Pacific  to  the  Atlantic 
ocean,  and  the  Gulf  of  Mexico;  and  to  be  known  as  the  Northern 
Pacific,  Central  Pacific,  Southern  Pacific  and  Texas  Pacific  Na- 
tional Highway.  The  Texas  road  should  connect  with  the  Gulf 
coast  through  one  of  the  ports  of  Texas,  and  the  Southern  road 
should  connect  with  the  Atlantic  coast  through  one  of  the 
Southern  States'  ports,  &c.  To  complete  the  system,  highways 
crossing  the  country  from  south  to  north  should  also  be  built  at 
intervals  of  from  200  to  500  miles  distant  from  each  other;  built 
so  as  to  conform  to  the  lay  of  the  country,  its  valleys  and  moun- 
tains, rivers,  and  as  its  business  would  seem  to  demand.  One 
should  be  constructed  from  the  Texas  Pacific  in  California  and 
running  north  through  the  great  valleys  of  the  San  Joaquin  and 
Sacramento  and  on  through  the  State  of  Oregon  into  Washington 
Territory  until  it  intercepted  the  North  Pacific  Trunk  Road  in  the 
latter  Territory.  A  second  road  should  be  built  starting  from  the 
Texas  Pacific  in  the  Territory  of  Arizona  and  running  north 
tnrough  the  Territories  of  Arizona  and  Utah  and  intersect  the 
North  Pacific  in  the  Territory  of  Idaho;  and  so  on  until  the  whole 
territory  of  the  United  States  should  be  accommodated  with 
Grand  National  Trunk  Roads  at  intervals  of  from  200  to  500 
miles,  conforming  to  the  lay  of  the  country,  its  population  and 
business. 

These  improvements  may  take  generations  to  complete,  so  it 
will  take  generations  to  accumulate  the  means  to  build  them, 
and  generations  may  pass  away  before  they  will  all  be  wanted, 


233 

but  they  can  be  commenced  next  year,  and  the  first  that  should 
be  constructed  is  a  double  track  of  the  Central  National  High- 
way; leaving  the  bay  of  San  Francisco  and  taking  the  most  direct 
feasible  route  to  the  Atlantic  sea-board;  visit  the  great  cities  if 
possible,  but  make  no  important  crook  in  order  to  do  so.  As 
these  roads  would  in  all  probability  become  the  highway  of 
nations  as  well  as  a  national  highway,  regard  must  be  had  in  con- 
structing these  roads  to  straight  lines  and  light  grades — turn 
neither  to  the  right  nor  to  the  left,  save  to  avoid  obstacles  too 
great  to  overcome.  Put  them  in  the  right  place,  looking  to 
future  development  when  our  territory  shall  contain  a  population 
of  500,000,000  souls.  Literally  "exalt  the  valleys,  make  the 
crooked  places  straight,  and  the  rough  places  plain." 

Said  highways  would  be  a  credit  to  the  nation  and  a  protection 
and  convenience — military  and  post  roads,  as  well  as  for  general 
traffic;  thus  showing  to  the  crowned  heads  of  the  world  how  a 
country  can  be  controlled  and  improved  by  intelligent  freemen — 
making  a  good  example  for  other  nations  to  pattern  after. 

These  Grand  Trunk  Roads  having  no  bondholders,  requiring 
interest,  nor  stockholders  requiring  dividends,  nor  sinking  funds 
for  bond  redemption,  could  transport  freights  at  unheard  of  low 
rates. 

A  letter  from  Mr.  Albert  Fink  of  the  Louisville,  Nashville 
and  Great  Southern  Railroad,  an  engineer  of  high  reputation, 
says  of  the  cost  of  carrying  freight  upon  a  double  track  road: 
"I  estimate  that  the  cost  of  transporting  one  ton  per  mile  could 
be  reduced  to  two  and  one-half  mills,  and  one-half  mill  additional 
for  interest  on  the  investment." 

Assuming  the  above  figures  correct  these  national  roads  could 
transport  freight  from  the  bay  of  San  Francisco  to  New  York 
harbor  for  $10  per  ton,  and  from  San  Diego  on  the  Texas  Pacific 
to  a  Texan  port  on  the  Gulf  of  Mexico  for  about  one-half  of  that 
sum.  and  of  course  at  corresponding  low  rates  of  freights  and 
fares  on  all  of  these  national  roads. 

Perhaps  the  first  question  and  the  one  of  the  most  importance 
to  be  answered  in  connection  with  this  subject  is,  where  is  the 
money  to  come  from  to  build  such  a  gigantic  system  of  National 
Highways  ? 

The  question  as  to  where  the  vast  sums  of  money  are  to  come 
from  to  build  such  a  gigantic  system  of  National  Highways  as  the 
one  imperfectly  described  above,  has  been  fully  answered  in  these 

16 


234 

pages  which  constitutes  the  people,  the  money  power  of  the  coun- 
try, in  connection  with  this  question,  I  will  only  outline  a  little 
upon  the  theory  of  national  finance  to  briefly  answer  the  above 
question. 

It  will  be  remembered  the  money  system  outlined  in  these 
pages  constitutes  the  people  the  money  pozver  of  the  country,  they 
would  then  create,  own  and  loan  money  through  their  agent,  their 
banking  department,  and  pass  over  its  net  income  to  the  United 
States  Treasury  at  every  quarterly  settlement,  amounting  as  is 
believed  to  one  hundred  million  dollars  yearly,  which  if  set  apart 
for  the  purpose  would  enable  a  big  work  to  be  yearly  done 
towards  buying  or  building  this  system  of  proposed  roads.  Be- 
sides with  this  system  of  money  the  whole  country  would  be 
continuously  prosperous  and  the  present  rate  of  tariffs  and  taxes 
under  those  conditions  would  yield  the  Government  many  mil- 
lions of  dollars  annually,  which  it  would  not  require  for  current 
expenses.  Which  could  also  be  used  for  this,  or  some  other 
public  improvement.  This  much  could  be  done  yearly  without 
incurring  any  debt,  but  should  this  not  be  enough  for  any  one 
year,  the  people  could  loan  the  Government  any  sum  that  Con- 
gress should  authorize  the  Government  to  borrow  by  creating  the 
bonds  to  be  deposited  for  securing  the  money. 

The  blessing  derived,  from  the  law,  that  would  authorize  this 
financial  theory  does  not  stop  here.  It  would  regulate  effectually 
the  currency  of  the  nation  with  a  dignity  and  a  certainty  of  issue 
and  redemption  that  neither  the  currency  of  this  country  nor  that 
of  any  other  ever  yet  enjoyed.  It  would  at  once  bring  gold,  silver, 
greenbacks,  and  this  new  currency  to  one  measure  of  value  only, 
and  keep  them  so.  Further,  it  would  so  justly  and  effectually 
distribute  the  currency  over  the  country  that  citizens  of  Florida 
or  Washington  or  any  other  extreme  of  the  country,  could  obtain 
the  use  of  money  at  the  same  rate  of  interest  as  citizens  of  New 
York. 

Twenty  years  ago  we  had  the  pleasure  of  submitting  these 
plans  (both  the  finance  system  and  the  railroad  system)  to  an 
intelligent  committee  appointed  by  a  large  body  of  representative 
citizens  to  look  into  these  plans  and  report,  which  they  did, 
although  they  were  entire  strangers  to  us.  They  made  a  unan- 
imous report,  that  the  system  of  roads  should  be  built;  that  the 
finance  system  provided  ample  means  to  pay  the  State  debts, 
the  National  debt,  construct  this  system  of  railroads,  a  ship 
canal  across  the  isthmus,  &c.;  that  it  would  regulate  and  distri- 


235 

bute  the  currency  as  stated  above,  and  restore  the  industries  of  the 
nation  to  prosperity,  &c.  And  so  says  every  man  that  has  fully 
digested  the  theory. 

We  have  shown:  That  to  cheapen  freights  and  fares  to  any 
considerable  extent  upon  railroads  in  this  country,  a  radical 
change  must  be  made  in  obtaining  means  to  build  them,  and  also 
a  partial  change  of  ownership.  Second:  We  have  pointed  out 
some  of  the  changes  that  should  be  made  in  ownership,  and 
how  the  means  should  be  raised  to  construct  the  railroads  of  the 
entire  system  proposed  to  be  built  by  and  for  the  people.  We 
will  now  point  out  some  of  the  advantages  accruing  direct  to 
both  the  Government  and  people  should  those  changes  be  made 
as  suggested:  First — as  a  measure  of  sound  statesmanship;  be- 
cause it  is  only  by  constant  intercourse,  business  and  social,  that 
the  sparsely  settled  extremes  of  the  country  can  be  bound  in 
common  interests  with  the  older  and  more  thickly  settled  por- 
tions, and  it  is  sound  policy  and  wise  foresight  to  promote  the 
most  intimate  relations  with  all  sections  of  our  common  country, 
which  this  system  would  surely  and  safely  reach.  This  neces- 
sity has  already  been  recognized  by  the  Government  in  its  grants 
of  bonds  and  lands  to  the  Union  and  Central  and  Kansas  Pacific 
roads,  and  of  lands  to  other  trans-continental  roads,  under  the 
belief  that  they  could  and  would  be  built  without  further  Gov- 
ernment aid.  I  lilt  they  cannot  be  built  by  individual  capital,  and 
the  responsibility  still  rests  upon  the  Government  to  complete 
all  the  projected  Pacific  roads  as  she  has  those  already  built,  and 
under  this  system  all  would  be  built  without  grants  of  land  or 
bonds  issued  to  private  companies.  Second — As  a  means  of 
national  defense;  because  it  is  the  duty  of  the  Government  to 
construct  post  and  military  roads,  so  that  troops  and  supplies 
and  information  can  be  promptly  and  cheaply  transported  to  any 
point  threatened  with  invasion  from  without  or  insurrection  with- 
in. Third — As  a  local  military  necessity;  because  the  experience 
of  the  nation  on  the  Central,  Union  and  Kansas  Pacific  roads  has 
proven  that  the  roads  and  telegraph,  and  the  facilities  thereby 
provided  furnish  the  only  sure  means  of  intercepting  and  quieting 
hostile  Indians,  and  unmistakably  indicate  the  adoption  of  this 
same  method  to  prevent  constant  depredations  in  western  Texas, 
New  Mexico  and  Arizona  and  elsewhere,  making  life  and  prop- 
erty secure,  and  establish  there  the  same  law  and  order  that 
prevail  along  the  present  Pacific  line.  Fourth — As  a  measure  of 


236 

practical  economy;  because,  as  already  shown  by  experience  of 
the  Pacific  roads,  the  expense  of  maintaining  a  military  establish- 
ment for  the  protection  of  all  the  territory  against  Indian  depre- 
dations, Mexican  and  other  bandits,  will  be  largely  reduced  by 
enabling  the  Government  to  transport  troops  and  supplies  at 
one-sixth  of  what  it  would  cost  upon  railroads  built  and  run 
under  our  present  system,  thus  saving  many  millions  of  dollars 
per  annum,  and  at  the  same  time  provide  more  efficiently  and 
economically  for  the  care  and  maintenance  of  the  Indian  tribes 
under  the  espoinage  of  the  Government.  Fifth — As  a  commer- 
cial necessity  to  the  whole  people,  many  of  which  are  deprived, 
at  the  present  time,  of  even  the  advantages  of  the  present  roads. 
It  will  be  a  direct  saving  to  the  whole  people  of  the  country  by 
reducing  freights  from  three  cents  to  three  mills  per  mile  per  ton 
on  all  National  Highways.  Perhaps  present  prices  could  be  ob- 
tained for  the  great  through  traffic  with  India,  China.  Japan, 
Australia,  Western  America,  Mexico  and  Canada.  Said  roads 
would  be  the  highways  of  nations  as  well  as  national  high- 
ways, and  some  of  them,  no  doubt,  would  become  interna- 
tional to  a  limited  extent.  For  other  nations,  by  adopting  this 
theory  of  National  Finance,  could  also  build  railroads  without 
oppressing  their  people  with  taxes  for  that  purpose,  and  they,  no 
doubt,  would  extend  some  of  our  roads  far  into  the  British  pos- 
sessions on  the  north,  and  others  would  be  extended  south 
through  Mexico  and  the  States  of  Central  America  into  South 
America,  one  branch  running  down  through  those  rich  countries 
bordering  the  Pacific  Ocean,  and  another  branch  through  those 
countries  bordering  the  Atlantic  Ocean,  thus  binding  together 
the  whole  American  continent  by  grand  arteries  for  international 
traffic.  This  system  being  first  developed  by  and  centering  in 
the  United  States  of  North  America,  the  entire  nation  would 
be  greatly  benefitted,  and  in  this  way  the  people  of  the  United 
States  would  be  effectually  protected  against  the  present  growing 
power  of  railroad  monopolies,  and  save  the  necessity  of  any  fur- 
ther grants  of  lands,  bonds  or  money  to  private  corporations 
for  railroad  purposes,  the  Government  making  all  her  roads  open 
highways  such  as  the  people  have  a  right  to  demand. 

Sixth — It  is  the  duty  of  the  Government  to  commence  this 
system  of  railroad  building  immediately,  because  the  communi- 
cation thus  established  with  the  rich  and  productive  states  of  old 
Mexico  and  other  surrounding  countries,  would  secure  a  large 


237 

portion  of  the  lucrative  traffic  now  diverted  to  other  countries, 
and  would  thereby  increase  the  revenue  of  the  Government,  while 
at  the  same  time  the  connections  made  with  lines  projecting  from 
the  capital  of  Mexico  to  its  northern  borders,  would  stimulate 
and  develop  this  trade,  and  extend  it  into  all  parts  of  this  country 
upon  those  cheap  national  highways,  and  enrich  the  citizens  of 
this  country  by  the  exchange  of  our  manufactured  goods  and 
products  of  our  soil,  for  those  of  her  soil  and  mines,  and  the 
same  may  be  claimed  with  all  other  civilized  countries,  provided 
these  highways  were  constructed  so  that  the  interchange  of  pro- 
ducts from  their  extreme  borders  with  the  interior  of  our  own 
country,  could  be  made  at  one-tenth,  or  even  one-fifth  the  present 
fare  rates. 

-nth — The  Government  should  construct  these  roads,  be- 
cause it  is  her  duty  to  protect  the  citizens  whose  guardianship 
it  assumes  under  treaty  obligations  in  the  accumulation 
of  Mexican  and  other  territories  in  which  they  were  residents, 
and  also  all  citizens  who  have  been  induced  to  settle  on  the 
frontier  to  better  their  conditions  and  develop  the  country,  there- 
by subjecting  themselves  to  hardships  and  dangers,  of  which 
railroads  would  relieve  them. 

Eighth — These  roads  should  be  constructed  as  a  prudential 
measure,  to  avoid  an  approaching  conflict  between  railroad 
monopolies  and  the  people.  The  people  very  justly  complain 
that  although  near  $200,000,000  has  been  taken  from  them  for 
railroad  purposes,  their  Government  owns  no  road,  and  their  gifts 
and  their  Government  have  empowered  the  companies  that  have 
received  these"  bequests  with  the  privilege  of  taxing  them  and 
their  posterity  forever  with  high  freights  and  fares,  so  as  to 
enable  the  companies  to  pay  interest  on  bonds  and  dividends  to 
stockholders,  and  accumulate  a  sinking  fund,  neither  of  which 
would  have  to  be  paid  if  their  Government  owned  the  road  after 
paying  for  them.  Xot  only  would  these  roads  be  a  means  of 
defense,  by  strengthening  the  military  arm  of  the  Government 
and  bind  our  country  together,  but  they  would  act  as  great 
arteries  of  trade  to  the  "whole  country,  and  the  expenditure  of 
$50,000,000  to  $100,000.000  annually  in  building- them,  would,  by 
the  demand  for  manufactures  and  productions  of  ever}*  descrip- 
tion, including  iron,  steel,  timber  and  other  material  needed  in 
the  contraction  of  engines,  cars,  bridges,  machinery,  buildings. 


238 

etc.,  for  the  use  of  the  road,  and  of  laborers  employed  in  building 
and  maintaining  the  same,  give  employment  to  the  furnaces,  mills 
and  machine-shops  of  the  country,  and  thereby  once  more  revive 
and  stimulate  the  depressed  industries  of  all  sections,  which  must 
thereafter  flourish  for  generations  to  come. 

Ninth — To  secure  to  the  people  and  Government  these  several 
advantages,  and  in  addition  thereto  secure  the  return  to  the 
people  of  the  millions  of  acres  of  land  heretofore  granted  to  con- 
struct roads  yet  unbuilt,  it  seems  not  only  the  right,  but  the  duty 
of  the  people  to  build  these  national  highways,  as  it  will  give  to 
all  sections  their  share  of  the  advantages  resulting  therefrom, 
and  not  only  revive  the  now  depressed  industries,  but  after  this 
transportation  department  was  once  fully  up  to  its  work,  none 
of  the  productions  of  the  United  States  would  have  to  pay  cor- 
poration freight  charges  on  any  local  road  a  greater  distance 
than  two  hundred  or  three  hundred  miles,  before  it  would  reach 
one  of  these  national  roads  where  it  would  roll  on  its  way  to 
market,  almost  as  cheap  as  though  said  road  were  a  great  nav- 
igable river,  open  for  the  use  of  all  the  people. 

Tenth — Telegraph  lines  necessarily  constructed  for  the  use  of 
these  roads,  and  operated  upon  the  same  cheap  principle  for  the 
benefit  of  the  people,  could  send  messages  anywhere  over  these 
lines  for  three  cents  each. 

Eleventh — Large  towns  and  cities  would  naturally  grow  up 
at  the  intersection  of  some  of  these  national  highways  as  manu- 
facturing and  trade  centres,  because  of  the  convenience  for  cheap 
and  rapid  importing  and  exporting,  afforded  by  these  roads. 
Towns  would  more  likely  be  built  up  under  this  system  of  owner- 
ship and  cheap  freights,  than  if  the  same  roads  were  owned  and 
operated  by  private  companies.  As  millions  of  tons  of  freight 
from  farms,  factories  and  mines  would  find  their  way  to  market 
over  these  roads  at  a  profit,  which  would  not  pay  its  way  to 
market  over  them  at  corporation  prices,  hence  its  value  is  lost 
to  the  world  as  well  as  the  business  of  handling  it. 

The  organization  of  the  banking  department  of  our  Govern- 
ment substantially,  as  pointed  out  in  these  pages  upon  that  sub- 
ject, and  for  the  purposes  therein  mentioned,  and  the  organization 
and  active  work  of  this  proposed  transportation  department  would 
mark  a  new  era  in  the  world's  history  of  railroad  building.  Not 
only  would  this  svstem  of  roads  be  constructed  at  the  rate  of 


239 

over  one  thousand  miles  per  annum,  but  the  great  facilities 
afforded  by  the  banking  department  in  furnishing  a  cheap  and 
abundant  supply  of  money  to  build  roads,  and  the  comparatively 
short  distance  necessary  to  build  roads  even  from  the  centre  of 
these  squares  in  order  to  reach  one  of  these  national  roads,  would 
instill  new  life  into  private  enterprise  in  railroad  building.  No 
doubt  hundreds,  or  even  thousands  of  roads  would  be  run  out 
from  mines,  towns,  cities,  districts,  etc.,  to  tap  these  roads, 
which  never  would  be  built  if  only  private  roads  with  their  high 
freight  rates  could  be  reached.  And  this  transportation  depart- 
ment would  not  only  sustain  itself  when  once  built,  but  it 
would  assist  other  departments  of  our  Government  by  carrying 
mails,  armies,  munitions  of  war,  etc.,  as  well  as  cheapen  freight 
for  the  benefit  of  the  whole  people.  So  it  would  lift  heavy  bur- 
dens from  both  Government  and  people,  thus  differing  from 
many  other  departments  which  derive  their  support  direct  from 
the  treasury — the  people's  pockets.  This  system  of  national  high- 
ways is  not  only  to  cheapen  freights  and  fares,  improve  all  sec- 
tions of  our  country,  destroy  railroad  monopolies,  etc.,  but  to 
insure  the  building  of  all  long  important  roads,  that  never  have 
been,  and  perhaps  never  would  be  built  without  Government 
aid;  and  leave  the  squares  of  territory  surrounded  by  these  high- 
ways to  be  improved  by  private  enterprise.  Many  of  these 
squares  would  equal  in  size  the  British  Isles,  and  extensive  rail- 
road systems  like  those  of  Britain  could  be  developed  thereon— 
roads  as  extensive  as  "the  Colossal  System  of  the  Northeastern 
Railway,"  "the  London  and  Great  Western,"  "the  Midland,"  "the 
Great  Northern,"  etc.,  of  England.  Hence,  if  this  system  should 
be  adopted,  no  complaint  need  arise  that  private  enterprise  would 
have  nowhere  to  exert  itself  in  building  railroads,  as  they  would 
have  an  undeveloped  territory  to  work  upon,  of  which  the  British 
Isles  would  hardly  make  the  fortieth  part. 


CHAPTER  LI. 

TAXATION. 
Freights  and  Fares. 

There  are  now  said  to  be  six  railroad  magnates  in  the  United 
States  that  by  a  few  moment's  chat  can  levy  a  tax  of  two  hundred 
million  dollars  upon  the  commerce  of  this  country  and  do  it 
according  to  law  by  raising  freight  charges  two  cents  per  cental. 

Such  a  power  is  truly  dangerous  to  rest  in  the  hands  of  six  men. 
It  is  a  taxation  without  representation  and  of  such  great  magni- 
tude in  both  principle  and  its  power  over  commerce  and  produc- 
tion, that  the  "Tea  tax"  or  the  oppression  of  the  Colonies  by 
the  British  Parliament  sinks  into  insignificance  by  comparison. 
This  power  of  taxation  should  rest  only  with  the  sovereign  people. 

The  National  and  State  legislatures — the  people's  representa- 
tives, exercise  the  powers  of  taxation  with  great  caution  even 
when  demanded  for  the  people's  good.  But  the  tax  levied  by 
these  railroad  magnates  are  diametrically  opposed  to  the  in- 
terests of  the  people  in  their  commercial  business  and  in  their 
industrial  production. 

This  great  and  growing  power  granted  to  and  exercised  by 
railroad  magnates  and  National  Bank  owners,  would  certainly 
justify  the  people  to  repossess  themselves  with  plenary  power 
over  all  forms  of  taxation,  whether  it  be  direct  taxation,  tariffs, 
exorbitant  freights,  or  unjust  interest  for  the  use  of  money,  all 
of  which  are  forms  of  taxation  that  take  money  from  the 
pockets  of  the  people.  We  think  ourselves  a  progressive  people — 
a  leading  nation,  yet  some  other  nations  with  less  pretentions, 
(Prussia,  Austria,  etc.),  have  already  solved  the  railroad  question 
by  Government  ownership,  and  pronounce  it  a  great  success, 
while  zve  continue  disputing  and  quarreling,  even  to  riots,  strikes 
and  bloodshed,  over  the  question,  and  go  on  granting  franchises, 
money  and  concessions  of  our  sovereign  rights  and  thus  bind 


241 

ourselves  with  more  and  heavier  chains,  instead  of  throwing  off 
those  now  upon  us. 

So  the  only  remedy  for  extravagant  freights  and  fares,  railroad 
strikes  and  riots  that  clearly  presents  itself  is  Government  owner- 
ship of  all  long  and  important  roads. 

Eminent  engineers  inform  us  that  freights  can  be  carried  on 
double  track  roads  honestly  built,  at  a  cost  of  two  and  one-half 
mills  per  mile  per  ton,  and  one-half  mill  for  interest  on  the  in- 
vestment. Such  a  reduction,  or  a  reduction  from  present  rates, 
to  double  those  figures  would  be  worth  aiming  at  and  contend- 
ing for  and  such  reduction  should  satisfy  the  most  radical  freight 
rate  reformer.  It  would  be  a  greater  reduction  than  has  ever 
been  contemplated  or  proposed  in  any  agitation  of  the  question, 
yet  it  is  both  practicable  and  possible  if  undertaken  and  prosecuted 
as  contemplated  in  these  pages.  Ten  dollars  would  pay  for  trans- 
porting a  ton  of  freight  from  San  Francisco  to  New  York  upon  a 
road  thus  built  and  operated,  now  three  or  four  times  that  sum 
is  demanded.  Such  a  reduction  of  freights  and  fares  would  be 
pleasurably  and  profitably  felt  by  all  our  industries  and  travelers, 
and  it  is  clearly  within  the  reach  of  the  American  people.  It 
seems  to  be  the  duty  of  the  farmers  and  other  producers  who 
are  the  most  deeply  interested  as  they  supply  90  per  cent,  of  the 
freights  to  demand  these  improvements  and  force  its  accomplish- 
ment by  their  votes. 

There  is  no  other  way  possible  to  solve  this  question  save  by 
Government  ownership.  In  that  case  the  plaster  would  be  as 
large  as  the  wound.  The  continual  granting  the  sovereign  rights 
of  the  people  to  corporations,  may  yet  absorb  the  balance  of  the 
rights  of  the  American  citizen  as  it  now  does  a  great  part  and  the 
sovereign  rights  of  American  citizens  be  entirely  ignored.  Tax- 
ing the  people,  making  the  law  by  controlling  Congress  and  the 
State  legislatures  will  be  all  in  the  power  of  corporations. 

All  taxation  whether  it  comes  direct  or  by  exorbitant  freight 
charges,  or  usurious  interest  the  right  to  assess  should  never 
be  given  up  by  the  American  people,  and  in  cases  where  it 
has  passed  from  them  they  should  loose  no  time  in  repossessing 
themselves  of  it,  as  all  taxes  come  from  their  pockets  and  should 
be  invested  for  their  benefit.  As  this  is  claimed  to  be  a  Govern- 
ment of  the  people,  by  the  people,  and  for  the  people;  not  a  Gov- 
ernment of  the  people,  by  the  people  and  solely  for  corporations. 


242 

To  cure  the  evils  of  corporate  monopoly  we  must  first,  find 
what  the  evils  are.  Second,  find  the  precise  remedy  for  those 
evils.  Third,  find  a  way  of  applying  the  remedy.  Corporate  use 
of  sovereign  power  against  the  best  interests  of  the  people  by 
National  Banks  and  railroad  corporations,  are  the  evils  com- 
plained of,  and  their  cure  here  aimed  at. 

Government  ownership  of  all  long  railroads  would  be  a  plaster 
sufficiently  large  and  potent  enough  to  cure  the  evils  of  railroad 
combinations,  exorbitant  freight  charges,  and  most  of  the  rail- 
road strikes  and  riots.  Four  or  five  Great  National  Highways 
(Post  and  military  roads)  crossing  the  country,  East  and  West, 
and  five  or  six  crossing  North  and  South  owned  by  the  Govern- 
ment and  operated  by  and  for  the  people  must  effectually  destroy 
and  prevent  any  important  railroad  combinations  in  America 
for  all  time  to  come.  Although  the  thirty  or  more  squares  of 
territory  laying  between  these  National  Highways  would  supply 
ample  room  for  the  expenditure  of  energy  and  money  in  private 
railroad  building  as  such  squares  of  territory  would  average  larger 
than  the  Island  of  Great  Britain. 

If  some  peaceful  means  are  not  adopted  to  abate  the  growing 
evil  and  railroad  owners  continue  to  combine  and  increase  in 
numbers,  wealth  and  power.  It  will  not  require  the  inspiration  of 
a  prophet  nor  the  foresight  of  a  statesman  to  see  that  a  time  of 
riot,  destruction  and  bloodshed  must  come  already  a  murmur, 
deep-toned  and  wide  spread  is  heard  in  the  land  as  significant  of 
coming  events  as  that  existing  against  slavery  before  the  late 
war  and  as  slavery  went  down  in  suffering  and  blood,  so  private 
ownership  of  all  long  important  railroads  must  cease  by  peaceful 
means  or  blood.  The  above  plan  is  a  practical  way  of  solving 
this  problem  by  peaceful  means.  Franchises  granted  by  the 
Government  are  a  part  of  the  people's  sovereign  power  and 
therefore  cannot  be  safely  and  absolutely  alienated  from  them. 

The  exercise  of  the  people's  sovereign  rights  by  corporate 
banks  in  issuing  public  currency  must  of  right  also  cease.  The 
Government  banking  department  elaborated  in  these  pages  would 
effectually  solve  the  money  question  and  supply  the  means  to  buy 
or  build  the  system  of  railroads  outlined  above,  without  cursing 
the  people  with  debt. 

A    transportation    department    owned    and    operated    by    the 


243 

people,  for  the  people,  as  the  Post  Office  "is  now  operated,  would 
confer  untold  blessings  upon  the  people. 

Perhaps  there  is  no  department  of  our  Government  that 
renders  such  cheap  and  efficient  service  or  one  that  has  been  so 
much  improved  the  past  thirty  years,  or  one  that  renders  such 
signal  service  to  such  a  large  number  of  our  citizen  as  our  Post 
Office  department.  And  yet  efficiency  and  cheapness  are  the 
watchword  for  that  department  and  much  improvement  is  yet 
looked  for.  This  is  a  department  organized  to  serve  the  people 
and  if  any  improvement  in  the  science  of  human  intercourse  is 
discovered  it  must  eventually  be  adopted.  The  telegraph  is  one 
such  improvement  and  belongs  of  right  to  that  department  and 
must  eventually  be  a  part  of  it.  Our  Postmaster-Generals  are 
supposed  to  be  chosen  on  account  of  their  enterprising,  spirit, 
quick  to  observe  and  adopt  improvements,  making  the  postal 
services  of  to-day  cheaper,  simpler,  swifter  and  better  than  they 
were  yesterday,  and  all  enjoy  and  appreciate  the  service.  Bear 
in  mind  this  valuable  and  much  blessed  department,  is  not  operat- 
ed by  express  companies  or  individuals  only  for  the  benefit  of 
selfish  man.  But  it  is  a  department  owned  by  the  people  and 
operated  by  the  people,  for  the  people. 

The  above  shows  what  great  blessings  may  be  enjoyed  by  the 
people  when  they  do  their  own  business  and  not  farm  it  out  to 
corporations,  which  are  sure  to  render  them  poor  service  at  great 
expense,  because  they  work  only  for  their  own  benefit.  The 
blessings  flowing  to  the  people  from  the  banking  department 
elaborated  in  these  pages  would  be  many  fold  greater  than  they 
now  enjoy  from  their  Post  Office  department.  They  could 
operate  it  at  less  expense  and  it  would  yield  them  millions  of 
revenue,  and  supply  them  the  tool  (money)  by  which  all  their 
earthly  comforts  are  produced  at  one-third  the  cost  they  now  pay 
for  the  same,  and  even  this  one-third  cost  is  paid  to  them- 
selves and  must  so  much  reduce  their  taxes.  All  business  is  done 
with  this  tool  even  our  Post  Office  department  and  all  Govern- 
ment departments  are  rendered  efficient  by  the  use  of  this  tool. 

The  transportation  department  owned  and  operated  by  and  for 
the  people,  would  be  another  forward  step  by  the  people  for 
their  own  benefit,  greater  blessings  would  flow  to  them  from  it 
than  is  now  enjoyed  by  them  from  any  other  department  of  their 
Government.  Production  however  abundant  amounts  to  but  little 


244 

to  producer  or  consumer  if  the  produce  cannot  reach  the  con- 
sumer which  frequently  happens  when  freight  charges  consume 
the  whole  value  of  the  freight.  Thus  discouraging  producers 
stopping  shippers,  and  depriving  consumers  of  cheap  food  and 
other  necessaries  in  the  great  cities.  It  is  essential  for  healthy 
prosperity  that  products  can  be  sold  at  a  profit,  to  the  producer. 
It  is  also  essential  for  the  people  that  the  fuel  that  warms  them 
and  turns  their  factories,  the  food  that  keep  up  a  healthy  flow  of 
blood  in  their  veins,  the  clothing  that  protects  them  and  hides 
their  nakedness,  should  be  brought  to  them  cheaply,  quickly  with- 
out hindrances  from  exorbitant  freight  charges,  strikes  and  riots, 
which  would  never  happen  if  the  people  done  their  own  freight- 
ing. Here  would  come  in  the  great  economic  blessings  to  the 
people  by  their  doing  their  own  business.  By  organizing  a  de- 
partment where  its  benefits  are  general. 


CHAPTER  LII. 


CONCLUSION. 

When  money  first  came  into  use  it  was  intended  to  be  simply 
a  token  of  value,  whereby  men  could  exchange  with  each  other 
the  products  of  their  industry.  By  the  machinations  of  the  money 
changers  instead  of  the  symbol  it  has  become  the  object  of  ex- 
change and  the  power  of  money  has  increased  until  it  has  ab- 
sorbed the  product  of  all  industries  and  enabled  its  manipulaters 
to  compel  the  masses  to  go  on  producing  while  they  are  permitted 
to  reap  from  their  labors  only  so  much  as  will  maintain  their 
bodily  existence.  The  heavy  hand  of  currency  capital  rests  as  a 
pall  upon  the  heads  of  the  producers,  and  the  people  see  the  ab- 
sorption by  syndicates,  trusts  and  capitalists,  of  all  that  the 
secular  world  regards  as  most  valuable. 

The  firm  grasp  of  this  giant,  holds  the  average  man  down 
to  the  treadmill,  where  his  weary  round  from  day  to  day  brings 
wealth  to  the  giant,  and  only  bread  to  the  toiler,  however  profit- 
able may  be  the  grist  of  the  mill,  capital  stands  by  to  absorb  it, 
and  the  dreary  routine  goes  on. 

This  slavery  of  currency  manipulation,  is  entirely  unnecessary 
the  means  of  emancipation  are  in  the  hands  of  the  people. 

Americans  arise  and  assert  your  independence,  throw  off  this 
yoke  of  ages,  be  ye  the  masters,  not  slaves  to  money,  relegate 
money  to  its  legitimate  place,  as  a  token  of  exchange,  crush  the 
hydra-headed  monster  who  has  made  it  the  object  of  life,  and 
furnish  to  all  who  have  products  or  labor,  the  means  of  making 
them  available  for  the  best  uses  and  purposes  of  man,  make  a 
symbol  which  shall  give  to  the  toiler  of  muscle,  and  the  toiler 
of  brain,  a  safe  and  a  cheap  means  of  retaining  a  fair  share  of 
the  wealth  which  is  the  result  of  his  labors.  See  to  it  that  your 
servants  in  office  are  men  who  will  guard  your  interests  and 
protect  your  rights.  Then,  when  agriculture,  manufacturers  and 
commerce  unincumbered  by  the  grasp  of  the  money  manipula- 


246 

tors  shall  cause  the  land  to  flow  with  milk  and  honey,  when  the 
yoke  shall  fall  from  the  industries  and  the  use  of  money  as  a 
servant  or  a  symbol  shall  replace  its  worship  as  a  God,  then  will 
be  seen  the  glorious  spectacle  of  a  nation  of  toilers  with  strong 
hands,  fertile  brains,  and  willing  hearts,  laboring  for  the  conver- 
sion of  nature's  stores  for  the  best  service  of  humanity. 

The  coming  centuries  will  look  back  with  admiration  to  the 
time  when  a  people  who  had  for  ages  been  under  the  harrow  of 
false  money  system,  arose  in  their  might  and  cast  off  the  hand  of 
the  oppressor,  and  with  the  blessings  of  the  civilized  world  upon 
them  and  with  joy  and  happiness  in  their  tread  march  forward 
a  new  nation,  redeemed,  regenerated  and  disenthralled. 

By  the  adoption  of  this  money  system  the  people  will  then 
be  the  master  and  money  the  servant.  Thus  reversing  the  pre- 
sent order,  where  all  productive  industry,  and  all  productive 
labor,  whether  by  brain  or  brawn  is  servant  to  money. 

The  adoption  of  this  system  would  render  possible  many  other 
desirable  improvements,  among  which  would  be  Government 
ownership  of  all  telegraphs  and  railroads  that  are  of  sufficient 
length  to  be  of  national  importance,  without  saddling  the  Ameri- 
can people  with  a  burdensome  debt.  And  the  question  which 
is  often  derisively  asked,  where  are  you  going  to  get  the  money  to 
purchase  these  billions  of  property?  will  cease  as  a  question,  for 
no  one  who  has  read  and  digested  the  contents  of  this  book  will 
fail  to  see  where  the  money  will  come  from. 


THE   AUTHOR  AT  31  YEARS  OF  AGE. 


PREFACE  TO  PERSONAL  HISTORY. 


The  following  item  was  part  of  the  testimony  given  by  a  young 
Hawaiian,  who  had  been  sent  abroad,  educated  and  brought 
back  at  the  expense  of  the  Government,  which  he  had  joined, 
with  a  party,  to  destroy,  when  being  tried  for  his  treasonable 
act  stated  under  oath,  "I  was  sent  abroad,  educated,  returned  and 
set  down  on  the  streets  of  Honolulu  a  pauper." 

After  reading  the  above  testimony,  I  felt  sad,  as  I  could 
realize  the  hopeless  out-look,  the  heart-sinking  of  a  man  thus 
viewing  himself  in  his  youth,  being  possessed  at  the  same  time 
with  the  wealth  of  youth,  health,  strength  and  education,  those 
particular  qualifications  that  should,  if  coupled  with  energy  and 
honesty,  make  a  man  more  valuable  to  his  country  than  his  phy- 
sical weight  in  gold. 

There  was  plenty  of  work,  but  he  did  not  want  work  at  the 
salary  offered  and  hoped  to  do  better  by  overturning  the  Gov- 
ernment. 

No  doubt  as  Horace  Greeley  said,  "The  darkest  hour  in  the 
history  of  any  young  man  is  when  he  sits  down  to  study  how  to 
get  money  without  honestly  earning  it,"  which  appeared  to  be 
this  young  man's  situation. 

I  thought  when  reading  the  above  testimony  of  trying  to 
counteract  this  feeling  of  hopeless  despondency  in  some  young 
men,  by  pointing  to  the  acts  of  some  noted  Americans  and 
other  foreigners,  who  arose  to  distinction,  and  who  were  no  bet- 
ter endowed  when  starting  in  life's  battle  than  this  young  man 
confesses  himself  to  have  been ;  but  never  as  yet  having  tried  to 
counteract  such  hopeless  despondency,  I  will  now  attempt  it  in 
the  way  indicated ;  but  as  few  can  ever  expect  to  reach  the  pinacle 
of  fame  as  statesmen,  that  Gladstone,  Webster,  Lincoln  and  others 
of  that  class  have  reached,  or  the  eminence  that  Napoleon,  Grant, 
Sherman  and  others  attained  as  soldiers,  or  as  Astor,  Roth- 
childs,  Vanderbilt,  Gould  and  others  attained  as  money  getters. 
As  it  seems  unwise  to  point  to  such  as  these  for  young  men 


248 

to  pattern  after,  as  it  required  opportunities  as  well  as  sterling- 
qualities  to  raise  men  to  such  eminence,  I  conclude  to  refer 
to  another  and  more  numerous  class  of  successful  men  who 
raised  themselves  by  shear  force  of  brain,  brawn  and  honest 
industry  from  poverty  to  wealth  and  influence.  To  this,  almost 
any  ordinary  American  boy  with  health  and  industry  may  attain 
by  pursuing  a  studious,  diligent,  honest  and  straightforward 
course.  In  looking  around  for  an  example  to  point  to  and  not 
being  satisfied  as  to  whom  to  refer  to  by  name,  although  I  knew 
many,  one  suggested  "take  yourself  you  know  more  about  him 
than  any  one  else."  So  after  some  reflection  I  said  "all  right," 
so  I  pen  this. 

THE  STRUGGLES  AND  TRIUMPHS  OF  A  BUSY  LIFE. 

I  was  born  on  a  New  Jersey  farm  in  Monmouth  County, 
June  1 5th,  1821,  where  I  continued  to  live  until  the  end  of  my 
2 ist  year,  when  I  was  expected  to  shift  for  myself  without 
money  and.  with  but  little  business  experience.  I  had  good 
health,  was  industrious  and  ambitious,  which  impelled  me  to 
strive  to  be  the  best  workman  on  the  farm,  to  run  faster,  jump 
further,  be  the  best  ball-player,  and  always  strove  to  be  at  the 
head  of  my  class  at  school,  (did  not  always  succeed,  but  was 
awarded  a  premium  by  my  teacher  for  "trying  harder  to  learn 
than  any  scholar  in  school"). 

My  star  of  hope  arose  early  and  promised  me  many  things 
and  time  to  acquire  them.  My  early  hopes  have  been  more 
than  realized,  I  never  thought  myself  a  pauper,  but  fully  realized 
that  I  must  rely  upon  myself  and  the  "Great  Father"  for  success, 
that  I  must  take  my  chances  among  thirty  million  others,  and 
await  my  opportunity. 

Industry,  honesty  and  good  judgment  was  to  be  my  guide 
star,  for  success.  I  found  them  always  in  demand  wherever  I 
went,  as  I  had  never  thought  of  success  coming  to  me  from 
any  other  source,  it  never  did.  After  becoming  my  own  boss, 
which  all  young  men  were  supposed  to  be  in  New  Jersey  at  the 
age  of  21,  and  looking  around  and  nothing  better  presenting 
itself,  I  hired  to  a  farmer  to  work  during  the  summer  and  fall, 
for  nine  dollars  per  month  and  board  and  washing.  In  the  win- 
ter I  taught  a  district  school.  Thus  passed  my  twenty-second 


249 

year,  as  happy  a  year  as  has  ever  fallen  to  my  lot  to  enjoy.  I 
was  just  as  content  working  for  thirty-five  cents  per  day,  as  I 
was  in  after  years,  when  my  time  for  overseeing  my  business 
netted  me  thirty  dollars  per  day,  or  when  my  net  income  ex- 
ceeded thirty  thousand  dollars  per  year. 

Not  seeing  in  New  Jersey  such  opportunities  as  my  heart 
craved,  I  went  west  prospecting  in  the  spring  of  my  twenty-third 
year,  as  far  as  Iowa,  on  the  Mississippi  river,  returned  in  the  fall 
and  taught  school  again  in  the  winter,  went  west  again  the  fol- 
lowing spring,  returned  early  and  again  taught  school.  Nothing 
in  the  west  seemed  to  suit,  plenty  of  land,  corn  worth  from  seven 
to  ten  cents  per  bushel,  a  full  grown  ox,  ten  dollars,  and  other 
things  there  produced  proportionally  cheap. 

Many  of  the  travelers  and  people  living  along  the  river,  were 
shaking  with  the  ague,  farmer's  living  on  bacon  and  "corn 
dodgers;"  no  flouring  mill  within  forty  miles  of  where  I  stopped 
in  Illinois  and  Iowa,  no  money  except  what  was  left  by  travelers 
and  immigrants,  this  soon  left,  being  sent  East  by  merchants 
to  pay  for  supplies,  business  was  mostly  done  by  barter. 

So  having  no  inclination  to  settle  there  I  returned  East 
as  before  stated,  and  in  January,  1846,  I  married  a  neighbor's 
daughter,  she  is  yet  with  me  hale  and  hearty,  daily  superintend- 
ing her  household,  her  flowers,  shrubs  and  lawn,  and  has  proved 
a  worthy  help-meet  for  a  pioneer,  and  now  being  surrounded 
by  husband,  children  and  grandchildren,  she  seems  to  enjoy  life. 
We  left  my  father's  house  next  morning  after  marriage  on  what  I 
may  be  permitted  to  call  our  wedding  tour,  for  California,  by 
the  way  of  New  York,  Cape  Horn,  Juan  Fernandez  Island  and 
the  Sandwich  Islands,  having  previously  engaged  passage  on  an 
emigrant  ship,  bound  for  that  far  off  and  almost  unknown  re- 
gion, where  we  arrived  in  about  six  months,  which,  with  the 
eighteen  thousand  miles  traveled,  renders  this  both  in  time  and 
distance  a  rather  uncommon  wedding  tour. 

Our  journey  was  rather  prosperous  and  upon  the  Whole 
pleasant,  although  we  encountered  a  severe  storm,  as  we  ap- 
proached the  Gulf  stream,  another  in  the  latitude  of  Chili  in  the 
Pacific  Ocean,  and  a  three  days'  calm  as  we  approached  Califor- 
nia in  July. 

War  was  raging  in  California  when  we  arrived  there  between 
Mexico  and  the  United  States.  The  upper  part  of  the  territory 


17 


250 

was  already  in  possession  of  the  United  States  forces,  which  we 
were  pleased  to  hear,  and  the  lower  part  soon  followed.  Some 
of  our  company  volunteered  and  went  down  with  Col.  Fremont, 
to  help  finish  up  the  work,  all  of  the  male  members  of  our  com- 
pany took  turns  standing  guard  for  about  one  month  in  what  is 
now  San  Francisco. 

The  number  of  inhabitants  of  Yerba  Buena  (now  San  Fran- 
cisco) when  we  arrived  there,  was  said  to  be  forty,  our  company  of 
168  persons  made  an  addition  to  their  number  of  about  400  per 
cent. 

After  this  digression,  I  will  proceed.  A  small  unproductive 
village  like  Yerba  Buena,  was  no  -place  for  an  ambitious  farmer, 
and  as  farming  was  my  profession  and  I  had  brought  some 
farming  tools  with  me,  I  was  anxious  to  get  to  work.  So 
after  about  thirty  days,  James  Light  and  myself  with  our  families 
left  the  town  to  fill  a  contract  we  had  made  with  Dr.  John  Marsh, 
to  put  in  a  crop  of  wheat  on  shares,  on  his  ranch  situated  on  the 
lower  San  Joaquin.  We  succeeded  in  getting  in  some  40  acres, 
which  grew  finely,  as  the  land  was  good,  and  the  rains  were  early 
and  abundant  that  year.  We  used  one  span  of  oxen  at  a  time, 
Mr.  Light  led  them  by  a  rope,  while  walking,  at  the  same  time 
scattered  the  seed  wheat  in  the  bottom  of  the  last  furrow,  I  held 
the  plow  and  urged  forward  the  team.  The  grain  was  covered 
about  four  inches  deep. 

There  being  no  further  service  for  us  at  the  Doctor's  after  the 
wheat  was  sown,  Mr.  Light  returned  to  town  and  in  March  1847 
I  moved  over  to  the  Mission  de  San  Jose,  about  thirty  miles  dis- 
tant, where  I  found  farming  prospects  more  favorable,  and  in  its 
vicinity  my  large  farming  operations  were  afterwards  prosecuted. 
Upon  my  arrival  at  the  Mission  I  plowed  in  the  Mission  field 
and  elsewhere,  planted  and  sowed  wheat,  barley,  peas,  potatoes 
and  made  a  nice  garden  planted  with  different  kinds  of  truck. 
All  of  this  sowing  and  planting  was  destroyed  by  grasshoppers, 
an  affliction  from  which  I  never  after  suffered,  although  I  farmed 
in  that  neighborhood  thirty  odd  years.  Later  in  the  season  I 
planted  some  late  potatoes,  they  grew  nicely;  but  before  they 
matured,  they  were  destroyed  by  cattle. 

The  wheat  sown  at  the  Doctor's  was  harvested  and  stored  in 
his  granary,  but  when  we  called  for  our  share  the  Doctor  gravely 
informed  us:  "You  have  no  wheat  here,  your  share  was  de- 


251 

stroyed  by  elk,  antelope  and  other  wild  animals,  my  share  alone 
was  harvested."  So  we  got  nothing  for  our  labor.  Thus  ended 
my  first  year's  farming  in  California.  Although  I  got  no  dollars 
out  of  it,  I  did  get  experience,  which  I  profited  by  in  after  years. 
I  had  tested  the  soil  in  different  places  with  several  different 
kinds  of  farm  products,  and  learned  the  most  suitable  seasons 
for  sowing  and  planting. 

I  supported  myself  from  the  proceeds  of  a  small  dairy,  which  I 
worked  on  shares  for  the  owner,  and  from  the  labor  I  performed 
for  others. 

Nearby  I  rented  a  piece  of  land  from  an  Indian,  and  built  a 
small  house  upon  it  and  moved  into  it  in  the  Spring  of  1848,  with 
a  determination  of  making  another  farming  venture  that  year. 

There  being  no  fences  or  fence  material  for  miles,  I  went  to 
the  Redwoods  twenty-five  miles  distant,  for  fence  material,  I 
made  a  pen  to  hold  animals,  fenced  a  small  garden  plot  and 
sowed  it  with  various  kinds  of  garden  seed,  intending  to  trans- 
plant them  into  the  open  ground  later  on,  but  human  plans  not 
being  infallible,  the  plants  were  never  transplanted,  for  the  rea- 
son, that  gold  was  discovered  about  this  time,  and,  taking  the 
gold  fever,  which  broke  out  with  epidemic  violence,  and  took 
nearly  all  the  people  (ourselves  included)  off  to  the  mines.  We 
did  not  get  much  gold,  but  we  got  the  argue  without  much 
exertion,  and  did  considerable  shaking.  The  gold  fever  having 
left  us  entirely,  we  returned  home  in  the  fall  and  in  the  healthy 
coast  climate,  the  argue  soon  left  us.  We  were  a  happy  couple 
when  we  got  back  to  the  farm,  although  our  garden  was  de- 
stroyed, our  hogs  had  gone  wild,  our  house  was  only  walls,  roof 
and  outer  and  inner  doors  made  of  rough  slabs,  hung  with  raw 
hide  hinges,  our  windows  were  muslin  and  we  had  "ground  for 
the  floor;"  but  it  was  our  mansion,  we  enjoyed  and  improved  it 
as  time  rolled  on. 

There  were  two  rooms  in  the  house  and  a  chimney  went  up 
from  the  division  wall  which  accommodated  a  fire  place  in  each 
room. 

One  dark,  blustry,  rainy  night  a  company  of  Indians  (bucks 
and  squaws)  had  got  caught  from  home  in  the  storm,  and 
knocked  at  our  door  for  shelter,  we  welcomed  them  in,  and  let 
them  occupy  the  outer  room  during  the  night. 

No,  we  did  not  fear  them  more  than  we  should  so  many  chil- 


252 

dren,  we  knew  only  one  or  two  of  them,  but  that  with  the  happy 
indications  of  the  rest  of  the  company,  on  admittance  convinced 
us,  all  was  well.  We  closed,  but  did  not  fasten  the  door  between 
us. 

During  the  night  an  ox  with  long  wide  spreading  horns,  with 
others  of  his  race,  was  getting  what  comfort  they  could  by  shel- 
tering themselves  on  the  lee  side  of  our  house,  there  being  no 
trees,  no  rocks,  no  fences  or  anything  else  behind  which  they 
could  get  for  shelter;  but  this  particular  ox  not  being  able  to 
get  close  enough  to  the  wall  on  account  of  his  long  horns,  stood 
with  the  side  of  his  head  at  the  window,  and  by  slipping  his 
horn  through  between  the  wall  of  the  house  and  the  muslin 
window  into  the  house  a  foot  or  two,  he  could  then  stand  close 
to  the  wall  and  thus  be  better  sheltered.  We  could  not  see  him 
nor  he  us,  but  we  gently  felt  of  his  horn;  and  did  not  molest 
him,  as  we  were  pleased  to  know,  that  even  dumb  animals  as 
well  as  Indians  could  get  comfort  from  our  surroundings. 

We  had  had  our  experiences  in  the  mines  and  had  bid  them 
farewell  forever,  fully  determined,  if  we  could  not  die  without 
going  to  the  mines  to  do  it,  we  would  not  die  at  all. 

Our  first  born  was  now  about  one  year  old.  Thus  ended  our 
second  year's  experience  in  California,  and  with  but  small  ac- 
cumulations. 

My  mind  of  course  turned  to  the  farm,  farming  was  my  pro- 
fession. I  had  a  good  piece  of  land,  was  living  on  it,  and  my  ex- 
perience gave  me  confidence  in  the  soil  and,  as  if  the  fates  had 
decreed  it,  farm  I  must,  and  farm  I  did.  My  farm  had  no  wood 
or  timber  upon  it,  fencing  could  only  be  obtained  at  the  Red- 
woods, twenty-five  miles  distant.  My  1847  experience  had  taught 
me  that  no  success  could  be  attained  without  fencing  the  land, 
as  cattle  and  horses  existed  on  the  plains  by  thousands  and  on 
account  of  the  water  and  green  feed  on  and  around  my  farm, 
made  it  their  stamping  ground,  in  the  fall  of  the  year.  So  I  pre- 
pared seed  with  a  determination  of  fencing,  and  farming  all  I 
could  fence  during  the  planting  season  of  1849,  and  on  the  loth 
of  March,  I  started  for  the  Redwoods  to  make  rails  and  posts 
for  my  intended  fence;  taking  with  me  three  Indians  (the  best 
help  I  could  get),  four  yoke  of  oxen,  our  tools  and  one  wagon. 
Night  overtook  us  about  ten  miles  from  our  destination,  where 
we  camped,  and  during  the  night  an  unusual  and  unexpected 


253 

snow  fell  completely  covering  the  ground  from  the  bay  shore  to 
the  top  of  the  mountains. 

The  grass  being  completely  hidden  by  the  snow,  from  the 
horses  and  cattle,  the  latter  came  out  of  the  hills,  walked  around 
through  the  valley  bellowing  and  seeking  food,  but  fortunately 
in  two  days  the  grass  began  to  show  on  the  plain,  and  in  a  few 
days  longer,  all  was  right  again  in  the  hills  where  we  had  to 
work.  We  kept  ahead  and  reached  camp  in  the  woods  before 
the  next  night.  We  worked  some  three  or  four  days,  preparing 
fence  material,  loaded  up  and  reached  home  within  the  week. 
The  Indians  suffered  some  working  in  the  snow,  with  bare  feet, 
fortunately  the  sun  came  out  bright  and  warmed  the  bare  logs, 
posts  and  rails;  the  Indians  would  work  a  while  in  the  snow, 
then  step  quickly  upon  some  stick  to  warm  their  feet.  We  con- 
tinued making  trips  to  the  woods  at  short  intervals  for  fence 
material  until  the  latter  part  of  summer,  when  we  erected  our 
material  into  a  fence.  Meanwhile,  we  had  plowed,  planted  and 
cared  for  our  young  crop. 

Thus  we  fenced  and  planted  about  sixteen  acres.  Potatoes 
was  our  principal  crop,  we  had  also  onions,  turnips,  cabbages, 
watermelons  and  muskmelons.  The  crop  grew  well,  one  part 
of  the  fence  was  weak,  and  in  the  fall,  the  only  green  feed  in 
the  neighborhood,  was  within  my  fence,  which  proved  an  almost 
irresistible  temptation  to  the  hungry  cattle,  and  that  fact  was  a 
source  of  many  anxious  fears  on  my  part,  lest  my  promising 
crop  should  be  destroyed  by  them,  and  I  have  to  struggle  on 
another  year  before  I  should  make  a  success  of  my  farming 
venture. 

The  cattle  having  broken  into  the  field  a  few  times  aroused 
my  combativeness  to  such  a  pitch,  as  to  cause  me  to  abandon 
my  bed  in  the  house,  and  with  blankets  and  gun,  spend  my 
nights  in  my  field,  by  that  means,  I  guarded  and  saved  .my  crop. 
I  did  not  injure  the  cattle,  only  aimed  to  scare  them  by  the  re- 
port of  the  gun,  and  sting  the  worst  of  them  with  small  shot. 
I  kept  up  this  watchfulness,  until  rains  came  late  in  the  fall,  and 
started  up  green  feed,  after  which  the  stock  scattered  and  an- 
noyed me  no  more  that  year. 

My  first  realization  from  my  three  years'  farming  venture, 
was  two  dollars  paid  me  for  watermelons  in  September  of  this 
year.  Fortunately  October  and  November  brought  to  California 


254 

a  large  number  of  gold  hunters,  coming  both  by  sea  and  land; 
nothing  seemed  to  be  craved  by  the  appetites  of  these  people, 
so  much  as  vegetables,  many  of  them  had,  or  were  rapidly  ap- 
proaching the  scurvy.  They  would  eat  a  raw  onion  or  potatoe 
with  as  great,  and  apparent  relish,  as  though  it  was  a  nice  flavor- 
ed apple.  The  result,  as  I  was  the  only  farmer  in  the  territory 
that  had  vegetables  for  sale,  I  was  much  sought  after  by  cus- 
tomers from  all  sides,  two  wagons  came  to  the  farm  several 
times,  from  the  mines,  two  hundred  miles  distant  and  bought 
loads  of  vegetables  from  me,  at  fair  prices. 

This  crop  proved  to  be  worth  about  eight  thousand  dollars; 
but  as  an  early  heavy  rain  sent  a  flood  of  water  over  my  field, 
from  a  brook  near  by,  and  continued  so  long,  that  nearly  one-half 
of  my  potatoes  were  destroyed  before  I  could  secure  them,  help 
being  scarce.  However,  what  I  did  gather  was  a  partial  com- 
pensation for  my  long  struggle,  besides  my  success  was  gratify- 
ing and  I  put  it  down  on  the  credit  side  of  my  ledger,  as  a  further 
sum.  Thus  ended  my  farming  venture  of  1849.  ^n  the  beginning 
of  January,  1850,  my  brother  William  came  to  me  by  the  way 
of  Panama,  arriving  after  a  long  and  perilous  journey.  He 
went  from  New  York  to  the  isthmus  in. a  steamer,  from  the 
isthmus  to  Acapulco  in  a  sailing  vessel,  and  from  there  to  San 
Francisco  in  a  steamer,  consuming  six  months'  time  on  the 
journey.  By  the  blessing  of  heaven  he  escaped  the  cholera  on 
the  isthmus,  while  his  shipmates  died  by  dozens.  And  he  escap- 
ed starvation  and  perhaps  a  violent  death  by  a  fair  wind  spring- 
ing up  and  wafting  them  safely  into  Acapulco,  at  the  critical 
moment  when  the  ship's  company  were  about  to  turn  cannibals 
and  cast  lots  to  decide  who  should  be  first  eaten.  My  brother 
afterwards  heard,  that  as  he  was  more  fleshy  then  others  of  the 
company,  they  were  going  to  make  the  lot  fall  on  him. 

My  brother  had  also  been  bred  to  the  farm,  and  was  young 
(about  21)  ambitious  and  very  industrious.  I  received  him  as 
partner  in  my  business,  we  worked  and  flourished  together  the 
next  four  years,  perhaps  as  no  other  farmers  ever  flourished 
before  in  America,  in  so  short  a  time.  My  experience,  my  loca- 
tion, my  established  business,  our  skill  and  industry,  together 
with  the  property  I  had  acquired,  all  became  capital  in  our 
hands,  and  we  worked  them  to  the  utmost  of  our  ability,  know- 


255 

ing  we  were  almost  the  only  farmers  in  the  territory  that  year, 
there  would  be  sale  for  all  we  could  raise. 

Fortune  is  said  to  knock  at  least  once  at  every  man's  door. 
We  looked  upon  this  time  an  opportunity,  as  fortunes  knocking 
at  our  door,  she  found  us  at  home,  we  opened  the  door  and  bid 
her  welcome,  and  thankfully  accepted  her  offer.  We  extended 
our  fence,  inclosing  about  500  acres,  we  farmed  what  we  could, 
and  let  out  to  two  tenants  a  part  of  our  land  to  be  worked  on 
shares,  we  supplying  the  teams,  tools  and  seed.  Our  crop  this 
year  was  comparatively  large,  and  the  soil  being  virgin,  the 
product  was  of  good  quality,  we  bought  out  our  two  tenants  at 
harvest  time,  paying  them  near  twenty  thousand  dollars  each  for 
their  share  of  the  crops  they  had  raised.  Our  gr.oss  sales  this 
year  approximated  $150,000,  our  onions  sold  for  forty  dollars 
per  cental,  tomatoes  three  hundred  dollars  per  ton,  potatoes  one 
hundred  and  fifty  dollars  per  ton,  and  other  things  in  proportion. 
This  crop  was  not  raised  and  cared  for  on  flowery  beds  of  ease; 
help  was  scarce,  until  harvest  time,  the  fencing  had  to  be  ob- 
tained at  great  expense  and  labor,  in  proportion,  the  same  as  in 
1849,  and  as  it  was  that  year,  so  it  was  this,  some  part  of  the 
fence  was  weak,  and  had  to  be  guarded,  myself  and  brother  done 
the  guarding. 

Help  getting  plenty  in  the  fall,  this  crop  was  gathered  without 
loss.  We  established  a  commission  house  in  San  Francisco  un- 
der the  firm  name  of  J.  M.  Horner  &  Co.,  for  selling  our  own 
and  others  produce:  which  served  us  a  good  purpose  in  this  and 
other  vears.  Thus  ended  our  farming  venture  of  1850,  we 
bought  this  year  one  hundred  acres  of  land  at-  the  landing  on 
the  Alameda  river  and  laid  out  the  town  of  Union  City  upon  it. 
An  historical  fact,  I  mav  be  permitted  to  mention  here.  Some- 
times after  the  mines  opened  in  California,  people  were  so  taken 
with  the  mines  and  merchandising,  that  agriculture  attracted  but 
little  attention ;  which  is  not  to  be  wondered  at,  as  so  many  re- 
ports had  gone  out  to  the  world  that  "California  was  hopelessly 
barren,  purely  a  mining  country."  Besides  reports  had  also 
gone  forth  of  large  and  sure  profit  made  by  mining,  and  large 
fortunes  by  merchandising,  besides  the  overland  immigrants 
arriving  in  California  at  the  close  of  the  dry  season,  could  hardly 
be  blamed  for  considering  the  country  barren  as  everything  was 
then  dry,  and  certainly  looked  barren.  Those  arriving  by  sea. 


landing  at  San  Francisco,  going  up  the  Sacramento  river  and 
crossing  the  uncultivated  plain  between  the  river  and  the  mines, 
and  returning  by  the  same  route  where  no  farming  or  gardening 
was  to  be  seen.  No  wonder  California's  barrenness  was  reported 
by  these.  So  extensive  did  the  idea  of  barrenness  spread ;  that  a 
company  was  formed  in  New  York,  to  run  a  steamship  line  be- 
tween San  Francisco  and  the  Sandwich  Islands  for  the  express 
purpose  of  supplying  California  with  vegetables,  they  sent  out  a 
Captain  Brown  to  look  for  a  suitable  place  somewhere  around 
the  bay  of  San  Francisco  to  construct  their  landings  and  depots. 
On  his  inspection  tour  around  the  bay  he  stopped  at  my  farm, 
looked  at  the  crops,  then  about  ready  for  marketing,  he  also  saw 
the  Agricultural  Fair  held  that  year.  He  returned  to  New  York 
and  reported 'to  his  company;  but  I  heard  no  more  about  the 
steamship  company  that  was  to  supply  the  people  of  California 
with  vegetables. 

In  about  three  years  from  that  time,  California  supplied  not 
only  her  own  vegetable  wants;  but  all  required  for  export  and 
for  ships,  besides  millions  of  pounds  perished  on  the  farms  and 
in  warehouses,  no  market  for  them.  Since  that  year,  general 
farming  in  California  has  not  been  very  remunerative,  as  its 
resources  were  great  and  markets  too  far  away. 

So  thoroughly  was  the  barrenness  of  California  soils  believed 
abroad,  that  a  gentleman  who  had  seen  a  report  in  the  Eastern 
papers  of  my  1850  crop,  was  fully  convinced  that  I  had  the  only 
piece  of  fertile  soil  in  the  State,  without  it  might  be  a  few  acres 
just  on  the  outside  of  my  fence,  he  thought  if  he  could  reach  my 
place  before  anyone  else  thought  of  it,  he  possibly  could  secure 
it.  He  came  overland,  drove  direct  to  my  house,  did  not  stop  at 
the  mines,  although  he  passed  them  two  hundred  miles  back.  So 
bent  was  he  in  reaching  my  place  and  at  once  secure  the  few 
imaginary  fruitful  acres  close  to  and  on  the  outside  of  my  fence. 
He  came  with  team  and  prepared  to  farm.  After  looking  around 
over  the  many  thousands  fruitful  acres  in  Santa  Clara  Valley, 
he  concluded  not  to  farm,  I  bought  his  team,  he  left,  and  I  saw 
him  no  more. 

We  made  extensive  preparations  for  increasing  our  business 
in  1851.  We  bought  some  excellent  farming  land  near  Union 
City,  fenced,  built  on  and  farmed  it  in  addition  to  our  home 
farm.  We  bought  teams  (horses,  mules  and  oxen  that  had  cross- 


257 

ed  the  plains),  imported  agricultural  implements  from  the  East- 
ern States,  iron  fence  and  wire  for  fencing  from  England.  By 
so  doing  miles  of  fencing  was  quickly,  but  not  cheaply  construct- 
ed; as  each  mile  cost  us  over  one  thousand  dollars.  This  year 
our  crops  were  large  and  a  ready  market  was  found  for  all  we 
raised,  though  at  reduced  prices  from  former  years,  as  other 
farmers  had  got  to  work  in  different  parts  of  the  State,  and  thus 
the  market  was  better  supplied.  We  bought  a  steamboat  (The 
Union)  to  carry  our  produce  to  market.  This  year  our  gross 
sales  approximated  t\vo  hundred  and  seventy  thousand  dollars. 
During  the  fall  of  this  year,  Professor  Shelton,  botanist  held  in 
San  Francisco  the  first  Agricultural  Fair  ever  held  in  California, 
to  which  I  was  the  largest  contributor,  and  some  months  after  I 
received  the  following  letter  and  a  silver  goblet  (the  largest  pre- 
mium) from  the  Professor. 

John  M.  Horner,  Esquire.  Although  you  were  recently  pre- 
sented with  the  accompanying  testimonial  of  the  public  appre- 
ciation of  your  efforts  to  develop  the  agricultural  resources  of 
California.  Yet  I  cannot  refrain  from  adding  my  individual 
congratulations  to  those  so  universally  accorded  by  our  fellow 
citizens,  if  it  be  but  to  assure  you  that  I  heartly  participate  in 
them  and  fully  recognize  your  right  to  the  title  of  pioneer  in  this 
branch  of  public  industry.  Sir,  it  is  true  that  the  premium  was 
not  awarded  by  me  personally  nor  by  those  who  could  be  in- 
fluenced by  any  preferences  I  may  have  indicated.  But  I  have 
the  consciousness  of  knowing  that  Messrs.  Fremont,  King, 
Snydcr  and  Saunders  whose  pleasing  duty  it  was  to  select  the 
most  worthy  of  the  candidates  for  the  honor,  did  nothing  more 
than  echo  the  public  voice  in  presenting  you  with  this  goblet. 

Take  it  then  sir,  no  less  as  the  evidence  of  the  public  esteem, 
than  as  proof  of  my  individual  regard,  keep  it,  as  a  memento  of 
successful  enterprise  and  as  a  pledge  of  private  friendship,  and 
believe  that  no  member  of  your  family,  however  remote  may  be 
his  generation  from  our  own  but  will  recognize  it  as  an  honorable 
token  of  the  worth  of  his  ancestor  with  more  pride  and  pleasure. 
Sir,  very  truly, 

Your  friend  and  obedient  servent, 

C.  A.  SHELTO\T, 

San   Francisco,  3Oth   March,   1852." 


25-8 

This  letter  is  copied  here,  as  a  partial  confirmation  of  my  own 
statements. 

We  extended  our  agricultural  operations  in  1852  by  purchas- 
ing more  farming  land,  fencing  and  placing  tenants  upon  such 
as  we  did  not  wish  to  use  ourselves,  they  working  it  on  shares. 
After  planting  was  over,  I  sent  my  brother  back  to  New  Jersey 
on  business  and  he  brought  out  with  him  my  father  and  mother 
and  all  their  children  and  children's  children,  two  of  my  wife's 
sisters,  and  a  brother,  and  some  other  young  people,  some 
twenty-two  souls.  He  arrived  home  in  the  fall  all  safe,  and  in 
time  to  take  the  place  he  had  left  in  the  firm  of  J.  M.  Horner 
&  Co.  for  selling  our  large  crop  now  ready  for  market.  We 
continued  our  prosperous  career,  buying  more  lands  and  farming 
them  ourselves  or  letting  them  out  to  tenants  until  our  potato 
crop  reached  the  enormous  quantity  of  twenty-two  million  (22,- 
000,000)  pounds  in  1853.  We  also  had  this  year  fifteen  hundred 
acres  of  wheat  and  barley,  besides  cabbages,  tomatoes  and  onions 
in  quantities. 

California  had  not  only  supplied  herself  with  vegetables  this 
year  for  the  first  time;  but  produced  a  large  surplus  which  could 
not  be  used  or  sold  and  was  never  sent  to  market. 

There  being  no  mill  in  the  State  to  convert  wheat  into  flour, 
we  built  one  at  Union  City  with  eight  run  of  burrs,  at  a  cost  of 
eighty-five  thousand  dollars,  and  ground  ours  and  others  grain. 
The  following  is  the  award  of  the  committee  on  the  first  flour 
ever  exhibited  at  an  Agricultural  Fair  in  California. 

Committee's  report  on  California  flour  1853.  The  undersigned, 
committee  on  flour,  assembled  at  the  store  of  Colt  and  Beals 
to  investigate  the  eight  samples  of  California  made  flour  ex- 
hibited at  your  (Coin.  Warren's)  Agricultural  Fair  in  competition 
for  the  award  of  a  fifty  dollar  cup.  The  committee  of  three  are 
old  New  York  flour  merchants,  and  have  given  each  of  the  sam- 
ples submitted  to  us  their  full  share  of  attention.  We  would 
premise,  that  three  of  the  samples  were  inferior  in  quality,  two 
defective  in  color,  and  for  the  credit  of  the  mills,  should  never 
have  been  sent  to  the  fair,  evidently  being  made  of  unsound 
and  inferior  wheat.  One  sample  badly  bolted,  five  samples  were 
all  of  choice  quality,  and  deserving  of  special  commendation,  and 
each  worthy  of  the  brand  of  Extra  Family  Flour.  The  commit- 
tee reduced  by  careful  comparisons  and  tests,  the  five  samples 


259 

marked  A.  C.  E.  F.  G.  down  to  three  C.  E.  F.  and  after  com- 
paring them  for  a  half-hour  finely  decided  to  mix  up  the  three 
samples  into  dough,  which  test  reduced  us  to  two  samples  E. 
and  F.  and  though  unanimous  in  our  judgment  that  E.  was  in 
all  respects  the  best  flour,  and  accordingly  decided  that  that  was 
the  premium  sample,  and  entitled  fully  to  the  award  of  a  silver 
cup.  We  feel  convinced  that  the  three  are  worthy  of  special 
mention. 

After  declaring  the  award,  we  proceeded  to  open  the  key  to 
the  initial,  and  found  that  "Horner's  Mills"  of  Union  City  was 
represented  by  "E;"  that  the  "Bernice  Mills,"  J.  F.  Houghton 
agent,  was  "F;"  and  that  "C"  represented  the  "Washington 
Mills,"  W.  Van  Court,  of  San  Francisco;  "G"  represented  the 
"Happy  Valley  Mills,"  Fitch  &  Co.;  and  "last  though  not  least, 
"A"  represented  the  "San  Joaquin  Steam  Mills,"  Calvin  Page 
Si  Co.  proprietors.  Since  making  our  award,  we  have  called  in 
a  fourth  New  York  flour  dealer,  and  to  whom  the  eight  samples 
were  submitted;  and  we  are  happy  to  say  that  the  gentleman 
without  hesitation  threw  out  the  three  inferior  samples  as  un- 
worthy a  place  in  the  exhibition,  and  of  the  remaining  five  sam- 
ples, his  opinion,  in  all  respects,  corresponded  with  our  own, 
which,  to  himself  was  a  surprise,  though  to  the  committee  a  very 
satisfactory  test,  that  we  had  decided  righteously.  All  of  which 
is  respectfully  submitted. 

H.  CHANING  BEALS. 
E.  T.  PEAS. 
WM.   S.   ALTON. 

Committee.- 

We  equipped  and  run  a  stage  line  in  connection  with  our 
steamer,  as  far  up  the  valley  as  San  Jose,  opened  sixteen  miles 
of  public  road,  mostly  through  our  own  lands,  and  fenced  the 
larger  part  on  both  sides.  These  roads  have  never  been  changed, 
save  to  narrow  them  to  sixty-six  feet,  we  had  fenced  them  one 
hundred  feet  wide. 

Money  and  other  values  increased  rapidly  in  our  hands,  and 
having  more  confidence  in  banks  of  earth,  than  in  commercial 
money  banks,  we  seldom  permitted  our  deposits  in  the  latter  to 
exceed,  at  any  one  time,  thirty  thousand  dollars,  before  we 
started  some  enterprise  or  invested  it  in  real  estate,  mostly  the 


260 

latter.  However,  the  unsettled  state  of  land  titles  rendered  in- 
vestments in  land  almost  as  hazardous  as  depositing  in  com- 
mercial banks,  as  we  found  to  our  cost.  Under  the  administra- 
tion of  Mexican  laws,  but  little  trouble  would  have  arisen;  but 
the  United  States,  claimed  the  right  and  did  oppose  all  land 
titles,  and  required  proof  of  their  genuineness  to  be  made  before 
its  land  commission,  reserving  the  right  of  appeal  to  its  District 
Court,  in  the  event,  the  commissioners  decided  against  the  Gov- 
ernment, and  to  appeal  again  to  its  Supreme  Court,  should  the 
District  Court  decide  against  it.  Thus  years  of  costly  law  suits, 
and  in  some  cases  ruin  to  owners  of  land  titles  before  final  set- 
tlement. We  suffered  from  the  laws  delay  in  settling  titles,  and 
from  squatters  keeping  from  us  by  force,  a  goodly  portion  of  our 
lands,  being  encouraged  by  the  Government,  to  do  so;  for  as 
long  as  the  Government  withheld  final  confirmation  the  squatter 
continued  to  hold  possession,  however  good  the  title,  no  court 
or  jury  would  oust  them  from  your  land.  We  suffered  more 
mentally  and  financially  during  these  years  from  the  above  named 
causes,  than  from  all  floods  and  four-footed  animals  in  former 
years. 

When  I  arrived  first  at  the  Mission  all  the  mission  lands,  out- 
side of  the  buildings  and  a  small  vineyard,  was  believed  to  be- 
long to  the  Government,  and  it  was  placed  temporarily  in  the 
hands  of  Padra  Real,  a  Catholic  Priest,  as  agent,  to  him  I  applied 
for  and  did  rent  a  certain  piece  of  land;  but  when  I  commenced 
work  upon  it,  1  was  met  by  an  Indian,  who  claimed  the  right  to 
occupy  that  land.  Upon  enquiry  of  those  supposed  to  know 
I  was  satisfied  he  held  a  right  there;  but  had  no  papers.  So 
after  that  I  dealt  with  him  instead  of  with  the  priest.  I  finely 
bought  his  claim  for  six  hundred  dollars  and  raised  my  first 
paying  crop  upon  this  land.  Before  my  second  crop  was  harvest- 
ed one  James  F.  Reed,  a  merchant  living  near  me,  brought  to  me 
a  map  of  this  land,  and  what  was  claimed  to  be  a  provisional 
grant  by  Mexico  to  another  civilized  Indian.  This  annoyed  me, 
but  as  there  was  no  record  writhin  reach  and  rather  then  risk  a 
law  suit,  I  acknowledged  his  claim  and  paid  him  seven  thousand 
dollars  for  it.  The  Indian  however  when  selling  to  him  had  re- 
served to  himself  a  life  time  right  of  occupancy;  but  as  he  only 
wished  to  use  a  small  piece  of  the  land,  there  was  no  conflict 
between  us,  we  lived  very  friendly,  although  his  house  was  just 


26l 

across  a  small  brook  about  one  hundred  feet  distant  from  mine. 
After  a  few  years  he  wished  to  leave,  and  I  bought  his  life  right 
to  the  land  for  six  hundred  dollars.  I  must  testify,  according 
to  my  belief,  that  if  there  ever  was  a  Christian  Indian  this  was 
one.  He  naturally  seemed  to  scorn  all  wrong  acts  and  always 
tried  to  do  good,  anyone  wishing  to  do  the  fair  thing  could  always 
get  along  with  him.  He  was  quiet  and  intelligent  much  above 
the  ordinary  Indian,  spoke  readily  the  Spanish  language  and 
aped  as  far  as  he  was  able  the  Spanish  people.  These  qualifica- 
tions no  doubt  had  their  effect  upon  the  Mexican  officials  when 
they  condescended  to  make  him  a  grant  for  four  hundred  acres 
of  land.  After  the  immigration  of  1849  there  began  to  be  some 
hard  characters  in  the  country,  and  acts  of  violence  was  fre- 
quently reported.  He  proposed  to  me  one  day,  "that  as  there 
was  so  many  bad  men  in  the  country,  and  as  we  were  friends  and 
neighbors  and  each  had  a  wife  and  family  to  care  for,  we  should 
each  protect  the  other's  family,  when  either  was  from  home, 
if  I  was  from  home  he  would  look  after  mine,  if  he  was  away 
I  was  to  look  after  his,"  to  which  I  agreed.  Upon  my  return 
soon  after,  from  a  night's  absence,  he  came  to  me  and  stated 
"he  had  got  up  three  times  during  the  night,  and  each  time  went 
quietly  around  my  house  and  all  being  still  within,  believed  all 
was  right,  and  went  back  to  his  own  house."  He  was  more 
honest  than  I,  for  I  never  done  so  much  as  that  when  he  was 
away,  though  nothing  happened  to  them. 

While  engaged  planting  our  1850  crop  one  Juan  B.  Alvarado 
and  Andrew  Pico,  both  ex-Governors  of  California  under  Mexico, 
sent  an  agent  who  presented  to  me  a  title  or  grant  from  the 
Mexican  Government  to  these  gentlemen,  of  the  whole  ex-mis- 
sion tract  containing  thirty  thousand  acres,  including  my  farm, 
which  I  had  bought  twice  already,  and  wanted  to  sell  me  the 
whole  tract.  In  submitting  these  papers  to  lawyers  for  their 
examination,  their  opinion  was  the  grant  was  a  good  one.  So 
there  was  no  alternative  for  us,  but  to  leave,  rent  or  buy,  after 
considerable  hesitancy  on  our  part,  enquiry  and  negotiation  we 
in  connection  with  George  B.  Tingly,  a  lawyer,  and  E.  L.  Beard, 
a  farmer  on  this  same  ex-mission  land,  bought  their  claim  for 
which  we  gave  our  joint  notes  for  forty-nine  thousand  dollars 
($49,000),  to  be  paid  at  some  future  time.  When  the  notes 
matured  neither  Mr.  Tingly  nor  Mr.  Beard  were  able  to  meet 
their  share  of  these  obligations.  I  reluctently  paid  the  money. 


262 

Mr.  Tingly  deeded  to  me  his  share  of  the  property,  Mr.  Beard 
also  offered  to  deed  to  me  his  third  interest,  but  I  permitted 
him  to  retain  it,  and  he  afterwards  repaid  to  me  the  money  I 
advanced  to  him.  Soon  after  this  grant  was  confirmed  by  United 
States  Land  Commission  and  an  appeal  taken  to  the  United 
States  District  Court.  While  this  title  was  being  adjudicated 
the  squatters  took  possession  of  much  of  these  lands,  particularly 
those  inside  our  fences,  which  we  were  not  cultivating.  We  paid 
taxes  upon  the  property  and  built  some  twenty-five  miles  of 
fencing,  yet  realizing  nothing  from  them,  except  from  those  parts 
we  had  under  cultivation,  the  squatters  alone  prevented.  Con- 
firmed grants  in  the  lower  courts,  with  good  fences,  did  not  con- 
stitute either  ownership,  or  possession,  according  to  the  squatter's 
creed  of  justice  and  law.  Their  creed  appeared  to  be  "the  good 
old  plan,"  "let  those  take  who  have  the  power,  and  those  keep 
who  can."  We  purchased  nineteen  hundred  and  fifty  acres  of 
a  confirmed  grant  of  excellent  land,  bording  on  the  north-western 
boundary  of  the  Mission  tract,  and  paid  for  the  same,  fifty-eight 
thousand  five  hundred  dollars,  we  raised  our  heaviest  crops  on 
these  lands,  fenced  and  farmed  all  of  them,  either  direct  or  by 
tenants;  with  the  exception  of  some  small  pieces  envolving  only 
a  few  hundred  acres,  the  above  comprised  all  our  purchase  of 
real  estate  in  what  is  now  Alameda  County.  California. 

Some  San  Jose  City  lots  and  a  hotel  involving  an  outlay  of 
nine  thousand  dollars  comprised  the  extent  of  our  possessions 
in  Santa  Clara  County. 

In  1851-2  we  in  connection  with  others  purchased  what  was 
known  as  "Potrero  Nuevo,"  comprising  2,100  acres  (a  Spanish- 
Mexican  grant),  now  a  part  of  the  city  of  San  Francisco.  Our 
undivided  share  of  the  property  was  four  hundred  and  fifty  acres, 
we  joined  in  the  expense  of  surveying  and  staking  out  streets 
and  lots  upon  it.  This  property  was  well  fenced  by  the  bay, 
by  creeks  and  a  stone  wall,  the  former  owner  used  it  for  a  pasture. 
This  land  was  soon  covered  with  squatters,  contrary  to  our 
rights,  under  our  grant  and  our  right  of  possession  as  indicated 
by  our  fence.  They  run  their  lines  around  large  pieces  and  com- 
menced selling  at  cheap  rates  to  innocent  parties,  in  small  lots 
and  blocks  according  to  the  plan  we  had  surveyed  and  staked 
them;  by  which  means  the  squatters  and  those  purchasing  from 
them  soon  became  so  numerous,  that  no  jury  empanelled  to  try 
the  case  would  ever  decide  the  case,  however  clear  the  proof. 


Soon  after  this  purchase  we  bought  a  confirmed  grant  contain- 
ing near  five  thousand  acres,  and  paid  for  it  two  hundred  thou- 
sand dollars.  This  land  is  situated  just  above  the  last  purchase 
(the  Potrero)  and  it  is  now  a  part  of  the  city  of  San  Francisco. 
We  spent  considerable  money  on  this  land  in  surveys,  fencing 
and  improvements.  Some  six  hundred  acres  adjoining  the  city, 
as  it  then  existed,  we  laid  out  in  lots,  blocks  and  streets,  and 
made  them  conform  to  those  already  laid  out  by  the  city. 

We  named  the  streets,  which  names  are  still  retained,  and  the 
property  is  assessed  as  situated  in  "Horner's  Addition,"  and  in 
a  separate  set  of  books  from  other  city  property.  The  above 
includes  about  all  of  our  real  estate  purchased  in  California  up 
to  1854.  These  lands  with  our  personal  effects  comprised  our 
property  at  this  time.  Our  personal  property  consisted  of 
steamer  "Union,"  costing  $18,000;  flouring  mill,  costing  $85,000; 
stage  line,  warehouse,  farm  houses,  out  houses,  30  miles  of  fenc- 
ing, costing  $900  per  mile,  farming  tools  and  livestock  of  good 
quality  and  sufficient  in  number  to  enable  us  to  plant  and  harvest 
our  large  crops  in  good  season. 

From  the  above  showing  it  may  readily  be  conjectured,  that 
I  was  a  man  of  note  at  that  time,  or  at  least  a  man  of  liberal 
means,  in  so  young  a  State  as  California  then  was,  and  among 
so  few  people  as  it  then  contained.  And  inasmuch  as  we  had 
produced  this  wealth  from  the  soil  of  a  new  and  untried  country, 
and  no  charge  was  ever  made,  that  we  had  acquired  any  part 
of  it  by  speculation,  or  by  overreaching  our  neighbors  in  trade. 
So  the  credit  due  us  was  readily  granted  by  all  acquainted  with 
the  circumstances. 

The  present  facilities  for  working  in  California  would  render 
the  work  done  by  us,  the  first  years  of  our  farming  there,  too 
insignificant  by  comparison  to  refer  to:  but  when  the  situation, 
the  material,  tools,  animals,  and  the  class  of  labor  we  had  to 
use,  is  considered,  it  may  not  look  so  easy. 

The  country  was  in  a  wild  state,  not  a  tree  or  bush  upon  the 
land  to  be  used,  fencing  to  be  hauled  25  miles  over  a  natural 
road  bed,  bridges,  none  except  what  we  made  ourselves  over 
brooks,  rivers  and  slough.  Indians  were  our  first  workmen. 
Thirty  miles  had  to  be  traveled  to  get  either  blacksmithing  or 
milling  done,  and  seventy-five  miles  to  reach  a  market.  The 


264 

walls  of  houses  were  made  of  sundried  brick,  joists  and  rafters 
were  (in  some  cases)  dragged  25  miles  over  rocks  and  gravel  part 
of  the  way,  which  wore  away  much  of  the  stick  before  reaching 
their  destination;  no  nails,  spikes  or  hinges  were  to  be  had,  raw 
hide  must  answer  instead,  sheeting  was  fastened  to  the  rafters 
with  raw  hide  and  the  doors  were  hung  with  raw  hide  hinges  in 
some  cases.  A  cart,  even  such  as  high-toned  ladies  (Spanish) 
often  rode  in  (and  there  was  no  dispute  about  their  being  ladies, 
educated,  and  with  the  manners  and  politeness  of  a  Chesterfield), 
were  made  entirely  of  wood  and  raw  hide,  no  nails,  spikes,  rivets 
or  bolts  were  to  be  had  for  the  purpose.  The  wheels  were  hewn 
out  of  solid  logs,  the  spokes,  hubs,  felloes  and  tire  were  one 
piece,  the  wheel  left  a  track  on  the  ground  when  in  motion,  six 
or  eight  inches  wide,  and  was  from  two  and  one-half  to  three  and 
one-half  feet  high,  the  frame  of  the  body  was  made  of  hewn 
timber,  as  was  the  axle-tree,  the  stakes  were  round  poles  about 
six  feet  high  with  other  poles  lashed  horizontally  to  the  stakes 
with  raw  hide  strings,  a  bullock  hide  laid  on  the  bottom,  an- 
swered for  bottom  boards  to  the  cart  and  another  stretched  tight- 
ly across  the  top  of  the  stakes  served  as  a  sunshade,  sometimes 
the  inside  was  lined  temporally  with  costly  red  blankets,  which 
made  the  inside  look  nice  and  cosy.  The  ox  yokes  were  without 
bows,  made  of  a  straight  stick  three  by  six  inches  square,  five 
and  one-half  feet  long,  straight  with  the  exception  of  a  small 
curve  near  each  end  to  fit  the  upper  part  of  the  oxe's  neck  near 
the  horns.  This  stick  was  lashed  to  the  head  and  horns  of  the 
ox,  just  back  of  the  horns,  by  a  long  strip  of  raw  hide  one  and 
one-half  inches  wide.  A  substitute  for  ox  chains  was  raw  hide. 
Fences  were  made  of  stakes  set  in  the  ground  and  poles  lashed 
to  them  horizontally  with  raw  hide.  The  usual  way  of  driving 
two  or  more  yoke  of  oxen  was,  one  man  on  horseback  to  lead 
and  stop  the  team  when  required,  two  more  men  on  horses,  one 
on  each  side  equipped  with  a  long  sharp  stick  to  punch  up  the 
oxen,  and  make  them  follow  their  leader,  and  one  in  the  cart, 
also  armed  with  a  sharp  stick  to  prick  up  the  rear  span,  should 
they  require  it.  To  turn  the  team  to  the  right  prick  or  scare  the 
left  hand  ox  to  make  him  step  ahead  of  his  mate,  this  turns  their 
heads  to  the  right,  as  the  yokes  being  tightly  fastened  to  their 
heads,  when  one's  head  turns,  both  heads  turn. 

The  rich,  although   worth  many  thousands  of  dollars  could 


not,  or  at  least  did  not,  ride  in  carriages,  there  was  no  carriages 
or  horses  broken  to  draw  in  harness  in  those  primitive  times  in 
the  territory.  The  Indians  were  the  principle  mechanics,  they 
made  the  carts,  saddles,  shoes,  houses  and  did  most  of  the  agri- 
cultural labor.  We  did  not  only  produce  the  wealth  above  re- 
ferred to  from  the  elements ;  but  at  least  double  that  amount  had 
been  produced  by  us,  which  we  had  paid  away  for  labor,  material 
and  other  expenses.  After  1849  g°°d  farm  laborers  commanded 
seventy  dollars  per  month  and  board,  mechanics  were  propor- 
tionally high.  We  employed  many  of  all  classes,  some  employed 
by  us  were  saving  of  their  earnings,  and  thus  laid  a  foundation 
for  the  fortunes  they  afterwards  acquired. 

The  position  I  held  in  the  community  at  this  time  made  me 
much  sought  after  as  an  endorser  of  notes,  a  signer  of  bonds  and 
a  leaner  of  money  to  the  impecunious.  As  I  had  been  raised 
in  a  purely  rural  District  of  New  Jersey  and  unacquainted  even 
in  theory  with  the  "tricks  of  trade,''  the  evil  effects  of  note  en- 
dorsement or  loaning  money  without  adequate  security,  I  loaned 
and  endorsed  freely,  hoping  to  do  good  thereby.  I  have  no  re- 
collection of  refusing  anyone  who  asked  for  an  accommodation 
or  requested  to  have  their  note  endorsed  up  to  and  including 
1853. 

Our  prospects  at  this  time  were  bright  and  our  property  ample 
to  gratify  every  wish,  and  yearly  increasing,  and  as  I  nor  my 
brother  either  ever  drank,  smoked,  gambled  or  dissipated  in 
any  way,  no  cloud  of  doubt  ever  crossed  our  mental  visions, 
that  our  property  should  not  always  continue  to  increase,  as 
we  attended  strictly  to  business.  Our  crops  were  large  this  year, 
we  viewed  them  as  ample  to  pay  every  endorsement  and  every 
obligation  we  had  out,  as  well  as  to  pay  the  expense  of  harvesting 
and  marketing  them.  Our  property  was  unincumbered,  our 
business  large  and  in  full  operation. 

Such  was  our  possessions,  prospects  and  position  when  the 
first  wave  of  money  panic  struck  California,  and  swept  over 
America  with  such  disastrous  results  from  1853  to  1859.  It  is 
said  that  during  two  months  in  1857  in  New  York,  discounts 
at  the  bank  fell  off  $24,000,000,  deposits  $40,000,000,  interest 
went  up  to  36  per  cent,  per  annum,  and  six  thousand  failures,  in- 
volving an  indebtedness  of  $300,000,000.  Yet  how  small  is  this 
large  sum,  when  compared  to  the  direct  and  indirect  loss  endured 

18 


266 

by  the  whole  people  during  these  years  of  panic.  The  breaking 
up  of  business,  the  depreciation  of  property,  the  enforced  idleness 
of  labor  and  machinery  and  the  check  to  enterprise,  all  com- 
bined to  make  up  a  loss  impossible  to  compute;  besides  the 
above,  the  heartache  and  mental  anguish  arising  from  loss  of 
business  and  property.  Men  of  families,  wealth  and  enterprise 
driven  from  their  homes  and  reduced  to  poverty,  and  in  conse- 
quence on  the  Pacific  Coast,  self  destruction  was  resorted  too,  to 
end  their  misery;  some  poisoned  themselves,  some  shot  them- 
selves, some  went  crazy,  etc. 

The  sum  of  this  suffering  was  great  and  should  be  reckoned 
with  the  pecuniary  losses;  all  of  which  were  brought  on  the 
people  by  our  imperfect  currency  laws,  which  caused  the  panic. 
This  loss  cannot  be  measured  by  dollars  and  cents,  no  power 
but  the  supreme  can  take  account  of  the  sufferings  of  the  human 
heart.  Upon  the  first  appearance  of  the  panic  on  the  Pacific 
Coast,  business  began  to  shrink,  property  decreased  rapidly  in 
value,  money  gradually  withdrew  from  circulation,  business 
failures  were  frequent,  larger  interest  was  exacted  for  the  use  of 
money,  more  property  was  demanded  as  security  for  a  given  sum, 
laborers  were  turned  adrift  by  thousands  (some  becoming  tramps, 
families  of  the  less  fortunate)  doubled  up,  that  is,  two  or  more 
were  compelled  to  occupy  one  house  in  the  towns,  which  before 
was  hardly  thought  ample  for  one,  and  squeezed  along  with  scant 
clothing  and  still  scantier  food.  At  the  same  time  thousands 
of  tons  of  farm  products  were  never  sent  to  market,  no  sale,  good 
potatoes  ten  cents  per  bushel,  but  there  was  no  ten  cents,  all 
this  happened  in  the  Golden  State  where  millions  of  gold  and 
silver  were  dug  from  the  mines  every  month,  and  tons  of  it  were 
hoarded  in  banks  and  treasury  vaults,  gloated  over  and  wor- 
shipped, a  man  with  a  few  hundred  dollars  in  gold  coin  was 
independent,  while  the  owner  of  property  that  cost  thousands 
of  gold  dollars,  was  hard  up  and  in  many  cases  let  it  be  sold  for 
taxes,  and  never  redeemed  it,  so  worthless  was  property  con- 
sidered during  the  pinching  part  of  the  panic,  many  with  ready 
money,  held  it  for  purchasing  properties  at  these  depreciated 
rates.  Later  money  could  not  be  borrowed  on  real  estate,  but 
real  estate  could  be  bought  under  the  sheriff's  hammer  for  one- 
fourth,  one-sixth,  etc.,  of  what  the  property  was  worth  a  few 
months  before.  These  are  facts,  brought  upon  the  country  by 


267 

its  imperfect,  cruel  currency  laws.  I  am  writing  from  memory 
but  these  things  are  indelibly  engraved  upon  my  mind.  I  was 
an  active  participant,  I  may  say  an  acute  sufferer  in  those  scenes. 

The  large  endorsements  above  referred  to,  now  came  on  to 
be  paid  by  us,  and  as  endorsement  creditors  were  exacting, 
money  must  be  had,  products  yielded  no  surplus  in  these  panicy 
times  from  which  we  could  draw;  we  for  the  first  time  com- 
menced mortgaging  our  property  and  at  this  time  money  was  not 
to  be  borrowed  in  San  Francisco  on  our  San  Francisco  real 
estate.  We  did  however  succeed  in  mortgaging  it  to  C.  K. 
Garrison  for  $50,000,  interest  4%  per  month,  compounded  month- 
ly and  payable  in  advance.  He  drew  on  New  York,  we  received 
the  money  there. 

This  $50,000  was  about  one-sixth  of  the  amount  we  had  paid 
for  the  property  and  the  improvements,  but  it  was  enough,  as 
it  swept  away  the  entire  property.  Thus  slipped  from  us  $250,000 
Our  $18,000  steamer  went  for  $7,000  to  pay  an  endorsement 
creditor.  In  parting  with  our  $85,000  flouring  mill  we  did  a  little- 
better  but  the  panic  continued  so  long  and  was  so  heavy  upon 
property  the  purchaser  sold  it  for  $5,000,  this  property  had  been 
depreciated  $80,000  by  the  panic.  The  San  Jose  Mission  lands 
that  had  cost  us  $70,000  including  improvements  .went  from 
us  for  an  endorsement  debt  of  $10,000.  However  the  squatters 
had  done  as  much  to  render  this  property  of  little  value  as 
the  panic.  Our  home  farm  of  1000  acres  which  we  had  pur- 
chased four  times  went  off  for  an  endorsement  of  $7,000. 

How  our  other  property  went  I  am  not  clear,  only  on  one 
point,  that  is,  it  left,  houses  and  lands,  horses  and  cattle,  and 
farm  products  at  the  depreciated  rates,  effected  but  little  in  pay- 
ing endorsement  or  other  debts  running  at  a  high  rate  of  in- 
terest, compounded  monthly,  with  the  addition  of  sheriff's  and 
lawyer's  fees  and  court  expenses. 

Property  was  so  seemingly  valueless  no  creditor  wanted  it, 
it  was  money,  money  and  nothing  but  money  was  wanted,  and 
money  was  not  to  be  had.  It  had  ceased  to  circulate  except  to 
a  limited  extent.  Although  my  endorsements  did  not  exceed 
$40,000  the  high  rate  of  interest  compounded  monthly  and  other 
expenses  forced  from  us  over  $70,000  before  they  were  fully  sat- 
isfied, and  that  was  paid  by  the  sacrifice  of  property  sold  at  one- 
sixth  of  what  it  had  been  worth  the  previous  four  years.  Prop- 


268 

erty  costing  us  $280,000  in  gold  coin  was  swept  away  to  pay  a 
forty  thousand  dollar  endorsement.  If  the  payment  of  the  endors- 
ed notes  had  been  exacted  before  the  panic,  we  could  have  paid 
them  without  embarrassment,  in  fact,  had  the  panic  not  come 
the  endorsed  notes  would  have  been  paid  by  their  maker,  as  he 
had  ample  means  before  his  property  was  rendered  almost  value- 
less by  the  panic. 

The  above  briefly  shows  how  the  property  referred  to  was 
produced  and  approximately  how  it  was  rendered  almost  value- 
less by  that  curse  to  enterprise  and  industry,  a  money  panic.  We 
had  no  fears  nor  thougths  that  the  laws  and  customs  of  our 
country,  that  forces  all  business  done  with  money,  all  taxes, 
tariffs,  debts  and  dues  to  be  paid  in  money  had  not  provided 
amply  the  money  necessary  for  doing  the  business  of  the  country, 
even  should  private  parties  hoard  theirs ;  but  by  bitter  experience 
we  have  learned  different.  Our  comparatively  large  property 
was  swept  from  us  so  quickly  as  to  be  bewildering. 

Had  we  been  caught  in  the  stock  market  or  been  spendthrifts 
gamblers,  idle  and  dissipated,  our  property  would  not  have  left 
us  more  surely  and  more  quickly.  Yet  the  difference  is  wide  in 
principle  between  the  way  ours  left  us  and  the  way  property  may 
leave  the  gambler;  while  the  latter  brings  the  evil  upon  them- 
selves, they  are  brought  upon  the  industrious  and  enterprising, 
by  the  government  shirking  a  confided  duty,  and  thus  opens  the 
way  and  renders  possible  money  panics.  A  hint  of  its  evils  may 
be  seen  in  the  foregoing  pages.  Had  I  not  been  burdened  by 
endorsements  I  should  still  suffer,  by  the  breaking  up  of  my 
large  business,  and  I  was  only  one  of  a  class,  numerous  all  over 
the  country.  How  cruel!  Oh,  how  cruel!  in  our  Government 
to  leave  the  country  subject  to  the  curse  of  money  panics,  when 
a  simple  law  would  prevent  it. 

The  money  system  outlined  in  this  book  if  adopted  would 
render  money  panics  impossible.  The  above  losses  and  suffering 
stimulate  the  production  of  this  book,  had  I  a  good  cause  to  labor 
for.  Incidently  I  will  remark  that  as  afflictions  seldom  come 
single,  it  did  not  in  my  case,  as  aside  from  the  loss  of  my  property 
I  was  otherwise  afflicted.  My  only  daughter  sickened  and  died 
while  my  property  was  being  confiscated.  I  was  personally 
afflicted,  a  lock-jaw  set  in  with  a  heavy  fever,  which  lasted  for  a 
long  time,  my  life  was  despaired  of  by  my  physicians  and  friends. 


269 

An  unexpected  favorable  change  took  place;  but  my  recovery 
was  slow  and  my  sickness  left  me  with  but  little  use  of  my  legs; 
and  for  weeks  I  used  a  crutch  whe,n  moving  around,  I  stated  in 
the  commencement  of  this  narrative  that  "my  star  of  hope  rose 
early  and  had  never  set  beneath  the  horizon."  At  this  time  it 
nearly  went  down,  I  finally  regained  my  strength  after  months 
of  mental  and  physical  suffering  and  with  it  came  slowly  back 
my  ambition,  for  all  of  which  I  am  humbly  thankful  to  my 
Heavenly  Father,  not  for  these  only  am  I  thankful,  but  as  in  the 
case  of  Job  I  have  been  blessed  again  with  health,  wealth  and  an 
influence  beyond  my  most  ambitious  anticipations  and  last  though 
not  least  have  been  blessed  with  more  sons  and  daughters.  I 
have  lived  longer  since  my  loss  and  suffering  than  I  had  before 
those  troublesome  times.  I  was  granted  a  new  lease  of  life  by 
the  Great  One,  and  for  a  purpose  not  known  to  me. 

However,  in  the  absence  of  any  other  more  worthy  visible  ob- 
ject, I  have  thought  perhaps  it  was  required  of  me  to  show  many 
of  the  evils  resulting  from  our  present  money  systems,  and  invent, 
work  out  and  make  known  a  more  perfect  way.  Whether  this 
is  a  correct  surmise  or  only  a  welcome  thought,  the  endeavor  to 
perform  it  has  a  been  delightful  labor.  Inventions  of  various 
kinds,  improvements  of  machinery,  plantation  cares,  schools, 
temperance,  politics,  my  duty  as  a  legislator  in  the  formulation 
of  what  I  consider  good  laws,  and  preventing  the  enactment  of 
bad  ones,  and  other  objects  have  in  turn  occupied  my  mind,  but 
none  was  ever  clamoring  for  consideration  so  persistently  as  this 
money  system.  It  has  been  impressed  upon  my  mind  with  a  per- 
sistence not  to  be  ignored  and  I  have  willingly  accepted  the 
charge  and  expended  some  money,  and  much  time  and  labor 
upon  it. 

It  is  well,  perhaps,  that  a  part  of  the  burden  of  the  great  ques- 
tion of  money  supply  should  rest  upon  one  that  had  suffered, 
thereby  qualifying  him  more  perfectly  for  the  work.  So  my 
property  and  business  leaving  me  at  the  same  time,  gave  me 
opportunity  for  reflection  as  to  why  and  how  my  property  had 
left  me  without  my  consent.  I  learned  by  studying  the  question 
that  it  was  our  imperfect  money  system  that  had  caused  the 
trouble,  that  money  panics  were  of  frequent  occurrence  in  times 
past,  that  their  evil  effects  were  wide  spread  and  very  disastrous, 
that  I  was  onlv  one  of  a  numerous  class  that  had  suffered  in  this 


270 

particular  panic,  which  in  connection  with  the  1873  panic,  caused 
me  to  think  long  and  deep  as  to  the  cause  and  cure  of  money 
panics.  I  readily  satisfied  myself  as  to  the  cause,  but  the  remedy 
was  not  so  easily  arrived  at.  This  book  is  the  result  of  my  labors. 
I  verily  believe  the  system  herein  outlined  is  constitutional,  that 
no  money  panic  can  ever  occur  in  any  country  where  this  system 
is  in  operation  and  we  think  all  must  believe  the  same  who  reads 
and  mentally  digests  its  contents. 

The  loss  of  my  property  placed  me  financially  where  I  had 
commenced  seven  years  before,  as  nothing  of  much  value  was 
saved  from  the  wreck,  except  my  experience,  my  prospects  even 
were  dark,  cloudy  and  discouraging.  I  gave  up  my  carriage 
team  and  my  watch  from  my  pocket,  and  commenced  physical 
labor  again  to  support  my  family.  I  did  the  best  I  could,  the 
panic  ceased,  and  its  evil  effects  wore  gradually  away  from  the 
country.  I  rented  my  old  homestead  and  after  a  time  bought  it 
again,  this  making  the  fifth  time  I  had  purchased  it,  the  paying 
for  it  was  slow  work. 

One  of  my  first  ventures  after  recovery  from  my  sickness  was 
the  building  of  a  bridge  over  the  Alameda  river,  under  a  contract 
with  the  county.  I  saved  over  three  hundred  dollars  out  of  the 
job.  I  contracted  to  drain  a  small  lake  in  the  neighborhood, 
got  well  paid  for  my  labor,  as  in  both  cases  I  personally  did 
much  of  the  labor.  The  owners  of  a  piece  of  land  in  San  Francis- 
co not  having  a  clear  idea  as  to  their  title  to  it,  offered  us  (my 
brother  and  myself)  a  share  of  what  we  could  get  out  of  it,  if 
we  would  work  it  up;  we  got  several  thousand  dollars  for  this 
labor.  About  this  time  we  had  an  extra  dry  year  in  California, 
not  enough  rain  fell  to  mature  a  crop,  and  believing  vegetables 
would  be  a  paying  crop  in  the  Fall,  we  looked  around  for  an 
opportunity  of  producing  one  and  finding  Alameda  River  Mill 
was  idle  and  likely  to  remain  so  for  sometime,  having  no  grain 
to  grind,  and  in  consequence  the  water  rolled  into  the  bay  un- 
molested. We  rented  the  use  of  the  water  and  some  land  near 
by,  made  our  ditches  and  in  June  commenced  to  wet,  plow  and 
plant  a  crop  of  vegetables,  mostly  potatoes.  From  this  venture 
we  (my  brother  and  myself)  realized  some  seven  thousand  dollars. 
So  by  little  we  regained  our  feet;  but  meeting  with  loses  in  other 
farming  ventures  from  rust,  drought,  unsaleable  crops  and  other 


271 

causes,  our  progress  was  slow,  in  fact  rather  backward  the 
last  few  years  we  remained  in  California. 

In  1879  my  brother  and  I  made  a  contract  with  Mr.  Claus 
Spreckels  to  go  to  the  Sandwich  Islands  and  cultivate  sugar 
cane  for  him  on  shares.  In  fulfillment  of  this  contract  we  sold 
our  farms,  chartered  a  schooner  and  placed  therein  our  families,. 
18  souls;  our  household  effects,  our  horses  and  farming  tools, 
and  started  for  the  Islands,  where  we  arrived  on  the  25th  of 
December,  1879.  We  landed  on  Maui  this  time,  it  being  a 
different  Island  from,  the  one  we  had  stopped  at  on  our  wedding 
tour  thirty  years  before.  The  schooner  quickly  discharged  and 
we  commenced  hauling  our  lumber  which  we  had  brought  with 
us  for  building  our  houses  on  the  land  we  were  to  use,  about 
six  miles  distant.  We  erected  our  houses  and  soon  commenced 
our  plantation  work.  We  had  500  hundred  acres  of  land  alotted 
to  us.  My  brother  and  sons  worked  the  western  half,  I  and 
my  sons  the  eastern  half,  under  the  firm  name  of  "J.  M.  Homer 
&  Sons."  My  boys  did  all  our  plowing  and  team  work  in  pre- 
paring for  planting  and  growing  our  first  crop  of  240  acres. 

From  the  time  we  commenced  preparing  for  planting  until  we 
got  returns  from  the  sale  of  our  sugars  two  full  years  rolled 
away.  In  consequence  of  our  planting  a  much  larger  area  than 
we  contracted  to  plant  the  first  year  J.  M.  Horner  &  Sons  bor- 
rowed $40,000.  Our  crop  did  well,  exceeded  our  expectations 
in  both  yield  and  the  price  for  which  it  sold.  We  returned  the 
borrowed  money  with  the  interest  and  had  a  net  profit  from  our 
venture  of  $25,000.  Mr.  Spreckles  could  not  let  us  have  any 
more  land  to  cultivate,  and  as  250  acres  was  rather  a  small 
plantation  for  five  able  men  to  superintend,  seeing  it  only  requir- 
ed replanting  once  in  four  years,  and  further,  Mr.  Spreckels' 
superintendent  did  not  want  any  planters  on  the  plantation,  he 
preferred  doing  the  planting  as  well  as  the  milling.  So  I  and  one 
of  my  boys  went  prospecting  around  the  Island  of  Maui,  finding 
nothing  encouraging  there  I  and  another  boy  went  prospecting 
on  the  Island  of  Kauai,  openings  for  cane  planting  such  as  we 
were  looking  for  we  did  not  find  on  that  Island.  We  also  pros- 
pected the  cane  belt  on  the  large  Island  of  Hawaii.  Here  we 
contracted  with  owners  of  the  Pacific  Sugar  Mill  Co.  to  do  one- 
half  of  the  planting  for  their  mill,  and  one  of  my  boys  took  charge 
of  the  business.  Here  we  made  considerable  sugar,  increasing 


272 

the  yield  on  our  half  of  the  plantation  from  500  tons  per  year  to 
2,000.  We  had  accumulated  there  a  property  we  valued  at 
$150,000,  but  the  "McKinley  Bill"  so  effected  sugar  property 
here  we  sold  it  willingly  for  one-half  of  that  sum. 

On  this  same  prospecting  tour  we  rented  1,250  acres  (since 
increased  to  2,000)  of  good  wild  cane  land,  with  a  view  of  start- 
ing a  new  plantation.  This  was  rather  a  discouraging  work 
to  undertake,  as  the  land,  though  rich,  was  covered  with  a  jungle 
of  tress  and  brush  and  had  all  to  be  grubed  and  cleared  before  it 
could  be  used,  at  an  expense  of  $33  per  acre.  Besides  habita- 
tions for  superintendents,  quarters  for  150  or  200  laborers  and 
accommodations  for  more  than  half  of  that  number  of  horses 
had  to  be  provided,  as  well  as  the  horses  themselves,  and  plan- 
tation tools,  roads,  bridges,  (a  wagon  wheel  had  never  yet  turned 
upon  the  land),  fencing  and  mill  had  all  to  be  built,  as  well  as 
raising  the  cane. 

The  building  of  the  mill  and  bringing  the  plantation  up  to  a 
paying  point  would  involve  an  expenditure  of  over  $300,000,  to 
provide  this  sum  was  no  small  concern,  as  our  own  means  were 
small  when  compared  to  this  sum.  However,  our  unprecedented 
success  in  making  our  first  crop  gave  confidence  to  people  of 
means  that  whatever  we  undertook  in  the  way  of  cultivation 
would  be  a  success.  So  we  readily  found  means  to  carry  on  the 
planting  department  of  the  plantation.  A  gentleman  contracted 
with  me  to  build  the  mill,  he  to  own  one-half  when  built  and  we 
the  other  half  provided  we  repaid  to  him  one-half  the  cost  of  its 
construction,  with  the  interest  within  a  specified  time.  The  mill 
was  accordingly  built  at  a  cost  of  over  $180,000  and  we  returned 
his  money  as  agreed,  and  thereby  became  the  owners  of  one-half 
of  the  sugar  works  and  all  the  planting  interest,  which  gave  us 
three-fourths  of  all  the  sugar  manufactured  at  the  works.  With 
the  exception  of  four  half  dry  years  our  crops  have  been  good 
and  sometimes  excellent. 

Not  wishing  to  carry  all  our  eggs  in  one  basket  we  have  run- 
ning in  connection  with  the  plantation  a  cattle  and  horse  ranch, 
where  we  raise  all  the  horses  required  on  the  plantation  and  some 
for  sale.  There  are  400  head  of  horses  and  mules  on  the  ranch, 
besides  those  used  on  the  plantation,  over  2,000  horned  stock 
and  200  dairy  cows.  So  the  plantation  and  neighborhood  is 
supplied  with  butter  and  beef  from  the  ranch,  and  we  dispose  of 


273 

the  surplus  fat  stock  elsewhere.  The  past  few  years  we  have 
invested  a  few  thousand  dollars  in  the  cultivation  of  coffee,  which 
is  already  a  paying  venture. 

I  served  as  a  member  of  the  Board  of  Supervisors  in  Alameda 
County,  California,  and  two  sessions  as  Noble  in  the  Hawaiian 
Legislature. 

RETROSPECTION. 

Had  my  crop  .of  1849  failed,  California  no  doubt  would  have 
been  at  least  one  year  longer  supplying  itself  with  vegetables, 
particularly  potatoes,  as  I  had  all  the  potatoes  that  were  raised  in 
the  State  that  year,  and  if  my  farming  venture  had  failed  this 
year,  as  it  had  the  two  previous  years,  there  would  have  been  no 
seed  for  planting  in  1850,  or  had  I  not  been  in  the  State  how  long 
it  would  have  been  before  some  one  would  have  produced  the 
first  crop,  is  a  question  difficult  to  answer.  Yet  a  first  crop  seem- 
ed necessary  to  give  confidence  in  the  business.  A  few  people 
came  to  look  at  my  first  crop;  but  it  was  too  small  to  attract 
much  attention.  After  my  second  was  produced  others  began 
to  take  hold  of  the  business  in  a  small  way.  Our  third  crop 
wrought  wonderful  changes  in  the  minds  of  some  mechanics, 
sea  captains,  lawyers,  college  professors  and  other  classes,  went 
into  the  farming  business,  but  unfortunately  for  them,  by  the 
time  they  got  fairly  under  way  the  bottom  dropped  out  of  the 
market  and  most,  if  not,  all,  lost  their  money  and  labor. 

Despise  not  the  day  of  small  things.  I  may  truthfully  state 
I  never  looked  back  with  regret  over  my  California  losses.  I 
did  for  a  time  harbor  resentful  feelings  against  some  that  had 
aided  in  my  financial  ruin,  and  seemed  to  gloat  over  the  fact 
that  I  had  been  brought  down  from  what  they  thought  my  high 
position. 

No  one  that  must  depend  solely  upon  himself  for  success 
should  despise  or  shun  the  day  of  small  things,  but  "strike  out 
unaided,  depend  on  no  other."  "Strike  and  keep  striking,  till 
you  hit  the  right  spot."  "Perserverance  captures  the  game."  I 
never  looked  upon  myself  as  a  pauper,  I  always  endeavored  to 
keep  myself  employed,  when  I  could  not  do  so  I  worked  for 
others.  One  time  out  West  in  order  to  find  some  thing  to  do  I 
worked  for  nothing  for  a  short  time  and  found  myself.  (It  was 


274 

however,  a  donation  to  a  church.)  I  did  this  partly  to  get  ac- 
quainted with  the  contractors  and  those  who  had  work  to  do; 
that  I  could  get  acquainted  with  them  and  they  with  me,  we 
were  all  unacquainted  with  each  other.  I  wanted  to  show  them 
that  I  was  on  the  work.  I  had  some  money  with  me,  but  preferred 
to  work  and  keep  it  than  do  nothing  and  get  short.  I  soon  found 
all  the  work  I  wanted,  my  last  work  there  paid  me  four  dollars 
per  day. 

To  show  the  importance  of  looking  after  and  husbanding 
small  things  I  will  relate  an  item.  In  the  summer  of  1845  I  was 
boarding  with  my  father  and  teaching  a  district  school.  In  his 
corn  field  were  sharp  corners  and  crooks  in  his  fence,  leaving  a 
few  square  feet  of  land  here  and  there,  which  he  could  not  culti- 
vate with  his  teams  and  consented  that  myself  and  brother  could 
dig  it  up  and  plant  potatoes  in  it  for  ourselves,  which  work  we 
did  mornings  and  evenings  so  as  not  to  trench  upon  our  daily 
duties.  Little  did  we  think  that  seven  years  from  that  time  we 
would  have  raised  and  sold  for  gold  coin  one  million  dollars' 
worth  of  potatoes  in  a  strange  country  three  thousand  miles 
away.  We  did  not  anticipate  much  of  an  income  from  what  we 
were  then  doing;  but  it  was  exercise  and  a  lesson  for  us,  as  it 
was  the  first  time  we  had  ever  attempted  to  produce  wealth  from 
the  elements,  working  under  our  own  dictation.  Producing 
wealth  from  the  elements  has  been  our  occupation  since,  and 
several  millions  besides  the  one  referred  to  above  has  been  pro- 
duced under  our  superintendence.  150  men  was  about  the  ex- 
treme number  employed  by  us  at  any  one  time  in  California,  here 
the  average  has  been  nearly  double  that  number.  The  point  I 
wish  to  make  is,  we  raised  some  potatoes,  dug  and  buried  them 
to  protect  them  from  the  winter's  frost.  They  were  yet  under 
the  frozen  ground  in  January,  when  I  was  ready  to  start  for 
California,  I  sold  my  share  of  them  for  five  dollars.  When  I 
got  to  New  York  I  added  two  dollars  to  the  five  and  bought  a 
Colt's  six  shooter  pistol.  I  was  told  "you  are  going  to  a  country 
occupied  by  savage  beasts,  and  still  more  savage  men,  and  you 
must  go  armed  to  protect  yourself." 

When  I  got  to  California  it  was  in  the  throes  of  a  revolution, 
a  war  was  raging  between  the  United  States  and  Mexico.  I 
carried  my  rifle  and  pistol  wherever  I  went  prospecting,  but 
seeing  no  one  I  wanted  to  shoot  and  no  one  wanting  to  shoot 


275 

me,  I  concluded  my  pistol  was  useless  and  traded  it  to  a  Spaniard 
for  a  yoke  of  oxen,  (the  first  animals  I  ever  owned)  and  with  them 
I  plowed  for  and  planted  my  first  crop  of  vegetables  in  California. 
From  this  small  beginning  grew  the  large  business  referred  to. 

Five  dollars'  worth  of  potatoes  in  New  Jersey  was  a  small 
capital  for  starting  a  large  farming  business  in  California,  but  it 
had  its  effect  in  helping  me  to  a  yoke  of  oxen.  If  I  had  idled 
away  my  mornings  and  evenings  I  would  have  had  no  potatoes; 
no  potatoes,  no  five  dollars;  no  five  dollars,  no  pistol;  no  pistol, 
no  oxen;  no  oxen,  no  plowing  and  experimenting  in  1847  and  '48, 
and  perhaps  the  foundation  would  never  have  been  laid  for  the 
large  business  I  afterwards  built  up.  A  young  man  starting 
out  to  hew  for  himself  a  character  and  a  fortune  without  assist- 
ance must  not  despise  the  day  of  small  things,  for  small 
renumeration  he  must  be  willing  to  accept,  or  even  no  remuner- 
ation at  all  until  better  opportunities  present  themselves;  he 
should  be  humble  enough  to  pick  up,  earn  and  save  the  pennies. 

It  is  his  school  days,  the  doing  things  in  a  small  way  may  be 
the  means  of  qualifying  him  for  handling  a  large  business  if  it 
ever  presented  itself.  The  valuable  superintendent  is  the  one 
who  understands  and  works  up  the. details  of  the  business,  and 
if  the  details  are  neglected  success  is  uncertain.  Had  I  not  saved 
my  small  earnings  it  is  doubtful  of  my  ever  having  been  able 
to  prospect  in  the  West  or  pay  my  way  to  California,  and  after 
I  got  to  California  had  I  been  unwilling,  or  from  lack  of  the 
necessary  qualifications  unable  to  handle  the  plow  and  guide  the 
team  myself,  and  work  on  alone  under  disadvantages  and  dis- 
couragements, I  may  then  have  been  from  home  when  fortune 
knocked;  but  I  was  there  ready  \vhen  she  knocked,  took  hold 
at  her  bidding  and  went  my  way  rejoicing. 

After  my  first  success  others  followed  my  plows,  worked  my 
teams,  planted,  harvested  and  marketed  my  crops,  made  my 
irrigating  and  draining  ditches,  built  my  buildings,  fences,  etc., 
as  I  directed.  My  business  was  large,  but  I  never  employed  a 
superintendent.  I  kept  hold  of  my  business,  bossed  it  and,  in 
fact,  was  absolute  monarch.  My  first  year's  struggles  I  worked 
with  my  head  and  hands  against  great  odds;  but  it  was  the 
struggle  that  made  possible  my  after  achievements,  which  as 
elsewhere  stated,  proved  perhaps,  the  most  prosperous  farming 
venture  from  so  small  a  beginning,  in  so  short  a  time  ever  re- 


276 

corded  in  America  up  to  that  time.  It  must  be  remembered 
that  the  wealth  referred  to  above  was  all  produced  from  the 
elements,  by  subduing  the  earth  and  making  it  yield  up  its 
treasures  to  us. 

This  may  encourage  some  young  men  who  are  compelled  to 
work  their  own  way  in  the  world,  not  to  get  discouraged,  wilt 
down  and  think  themselves  paupers,  as  did  the  young  educated 
Hawaiian  referred  to  in  the  beginning  of  this  narrative. 

If  you  have  health,  strength  and  youth  at  command,  you 
are  in  possession  of  the  most  valuable  earthly  blessing  possessed 
by  man.  They  are  blessings  that  scores  of  people  would  willingly 
pay  you  a  million  dollars  for  if  you  could  deliver  the  goods.  But 
fortuately  this  kind  of  wealth  cannot  be  bought,  or  sold;  and  if 
you  properly  use  it,  every  earthly  comfort  is  within  your  reach. 
Don't  be  afraid  of  working  yourself  to  death,  "Rust  consumes 
faster  than  labor  wears."  If  hard  work  of  head  and  hands  was 
killing,  I  should  have  been  dead  at  least  twenty  years  ago,  in- 
stead of  now  being  hale  and  hearty  at  the  age  of  seventy-seven. 

Young  man  husband  your  present  wealth,  don't  destroy  or 
waste  it  by  smoking,  chewing,  drinking,  gambling  or  other 
dissipations  as  these  all  consume  your  wealth  of  time,  health 
and  strength  and  your  acquired  wealth  to  gratify  them,  when 
you  gratify  them  long  enough  you  then  may  in  truth  be  a  self 
made  pauper. 

Senator  William  Y.  Horner  who  died  in  Lahaina,  Maui, 
Hawaiian  Islands,  on  the  2ist  February,  1898,  is  the  brother 
named  all  through  this  brief  biography.  He  was  born  October 
2ist,  1827.  He  was  one  of  the  most  industrious,  level-headed, 
trusty  and  honest  men  that  has  ever  been  my  lot  to  know.  His 
word  was  as  good  as  his  bond. 

JOHN  MEIRS  HORNER. 

Kukaiau,  Hawaii,  Hawaiian  Islands,  March   12,   1898. 


INDEX. 


PAGE 

National  Finance  and  Public  Money 3 

Preface 5 

Chapter  I. — The  Money  Question 7 

Where  the  Profits  go 10 

Chapter  II. — An  Act  Authorizing  a  Government  Banking 
Department  and  to  Authorize  its  officers 

to  make,  circulate  and  redeem  money.  . .  15 

Chapter  III. — Bill  Explanations 24 

Chapter  IV. — Comments  on  Bill 26 

Chapter  V. — Further  Comments 27 

Chapter  VI. — A  Government  Banking  Department 32 

Chapter  VII. — Government  Banking 36 

The  Currency  Wanted  and  How  to  Ob- 
tain it 36 

The  Republicans  Demand 36 

What  the  People's  Party  Demand 37 

A  Broad,  Sound  and  Solid  Base  Surely.  .  38 
Chapter  VIII. — Public  and  Private  Money  Considered  and 

Compared 39 

A  Big  Difference  Truly 46 

Chapter  IX. — The  Good  Time  Coming 48 

Chapter  X. — Money 49 

Chapter  XL— "Standard  of  Value"  and  "Measure  of  Value" 

Defined 53 

Chapter  XII. — The  Trade  Dollar 55 

A  Copy 55 

The  Two  Dollars .  55 

Chapter  XIII. — Our  Vicious  Money  System 57 

No  Change  in  Policy 57 

Chapter  XIV. — Money — Its  Proper  Distribution 63 


278 

PAGE 

Chapter  XV. — Finance  and  Currency 68 

Chapter  XVI. — How  much  Currency 69 

Chapter  XVII.— The  Abolition  of  Poverty 73 

Chapter  XVIII. — A  Criticism  of  Simon  Newcomb's  A.  B. 

C.  of  Finance 75 

Chapter  XIX. — Currency  Volume   83 

Who  Should  Decide 83 

Chapter  XX.— Hard  Times  86 

Finance  and  Money 86 

Chapter  XXI. — Limiting  the  Supply  of  Money,  Limits  Pro- 
duction and  Other  Business 91 

Chapter  XXII. — Views  of  Mr.  Price,  Professor  of  Political 
Economy  in  Oxford  University,  on 
U.  S.  Currency — Comments  on  those 

Views 92 

Chapter  XXIII. — Usury  and  Exorbitant  Interest 96 

Chapter  XXIV.— Free  Silver  Coinage,  Etc 99 

Chapter  XXV. — Money  Panics — Their  Cause  and  Cure.  .  .  102 

Chapter  XXVI. — Ex-Secretary  Windom's  Great  Speech.  .  108 

Getting  up  the  Bond no 

Chapter  XXVII. — Tradition  against  Progress 118 

Chapter  XXVIII. — Cheap  Money 120 

Chapter  XXIX. — Inflation,  Issue,  Redemption,  Etc 139 

Chapter  XXX.— This  Banking  System  Should  Surely  be 

Tried   141 

Chapter  XXXI. — The  Inflexibility  of  Greenbacks 144 

Chapter  XXXII.— A  Safe  Currency  must  be  Placed  In- 
stead of  Private  Money — Private 

Money  is  too  Timid  to  be  Safe 147 

Chapter  XXXIII.— How  the  Bill  if  Enacted,  would  keep 

Gold,  Silver  and  Paper  Money  on  a 

Parity 152 

Chapter  XXXIV.— Our  Currency  War 154 

Chapter  XXXV.— Public  and  Private  Money 162 

Chapter  XXXVI. — Money  Monopoly — Its  Practical  Ef- 
fects, Government  Banking  De- 
partment    167 

Chapter  XXXVII.— Gold,  Greenbacks  and  Public  Money.  176 

Chapter  XXXVIII. — Money — Its  Proper  Distribution 181 

Chapter  XXXIX.— A  System  of  Public  Money 183 


279 

PAGE 

Chapter  XL. — Law  can  Create  Value  and  Law  can  Destroy 

Value  . 1 88 

Chapter  XLI. — Money  Panics,  Hard  Times,  Its  Cause  and 

Prevention 190 

Chapter  XLII. — Suspension    and    Resumption    of    Specie 

Payments 194 

Chapter  XLIII. — Gold  Standard  and  Bimetallism 198 

Chapter  XLIV. — International  Bimetallism 203 

Chapter  XLV. — A  Sound,  Ample  and  Flexible  Currency  207 

Chapter  XLVI. — Settling  the  Money  Question 209 

Chapter  XLVII. — This  Public  Money  System  Demands.  . .  216 

It  is  Claimed  for  this  System 216 

Chapter  XLVIII.— Evils  Removed  by  the  Bill 224 

Chapter  XLVIX. — Government    Ownership    of    Railroads 

and  Telegraph  227 

Chapter  L. — Freights  and  Fares 229 

Chapter  LI. — Taxation   240 

Freights  and  Fares 240 

Chapter  LII. — Conclusion 245 

Preface  to  Personal  History 247 

The  Struggles  and  Triumphs  of  a  Busy  Life 248 

Retrospection 273 


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